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Optimism Surrounds the Approval of a Bitcoin ETF by the SEC

Optimism Surrounds the Approval of a Bitcoin ETF by the SEC

Key Points:

  1. Paul Grewal, Coinbase’s Chief Legal Officer, is optimistic about the imminent approval of a Bitcoin Spot ETF by the SEC.
  2. Bloomberg analysts Eric Balchunas and James Seyffart estimate a 90% probability of SEC approval for a Bitcoin ETF, up from the previous 75%.
  3. Grayscale may convert its Bitcoin Trust into an ETF following a recent court decision, while other giants like BlackRock, Fidelity, and Invesco are also in the running.

Paul Grewal, the Chief Legal Officer of Coinbase Global Inc., recently expressed confidence in the approval of a Bitcoin Spot ETF by the US SEC. According to Grewal, it is likely that the regulation will evolve in favor of this coveted investment product. In a conversation with CNBC, he emphasized Coinbase’s firm belief that the SEC will soon approve the requests to list the new Bitcoin ETF.

I am optimistic that these ETF requests will be accepted, if only because they should be under the law.

Paul Grewal, CLO of Coinbase

Bloomberg Analysts Support This View

Grewal’s confidence in the approval process is not isolated. Eric Balchunas and James Seyffart, two Bloomberg ETF analysts, have recently increased their forecast of SEC approval for a Bitcoin spot ETF from 75% to 90%. This rise reflects their growing confidence in the SEC’s future decisions.

Favorable Developments with Grayscale

The recent position of the SEC in its dispute with Grayscale brings another glimmer of hope. Following a court ruling stating that the SEC had no valid reason to reject Grayscale’s request to convert its Bitcoin Trust into a physically backed ETF, many observers expected the SEC to appeal this decision. However, to everyone’s surprise, the SEC chose not to contest the judgment, paving the way for Grayscale to convert its GBTC into an ETF.

Heavyweights Competing

In addition to Grayscale, several industry titans including BlackRock, Fidelity, Bitwise, and Invesco are seeking approval for their own Bitcoin Spot ETF. For Grewal, the reputation of the candidates could play in their favor this time. “I believe the companies that have submitted strong proposals for these products and services are among the largest companies in the financial sector“, he stated.

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