bitcoin could see an influx of up to $17.7 trillion from institutional investors as a former BlackRock manager predicts the imminent approval of spot bitcoin ETFs in the United States.
While some market players hopes have been dashed of the SEC approving a spot bitcoin ETF, bitcoin-news/analysts-spot-bitcoin-etf/” target=”_blank” rel=”noopener nofollow”>others have been optimistic. According to former BlackRock CEO Steven Schoenfield, spot bitcoin ETFs are on their way to financial institutions within three to six months.
bitcoin Spot ETF Approval Is Very Close
The SEC has been under intense pressure to approve the various bitcoin spot ETF applications it has received in recent months. Recently, some US senators expressed their opinions on the issue, bitcoin-news/spot-bitcoin-etf-lawmakers-sec/” target=”_blank” rel=”noopener nofollow”>pleading with the SEC to Approve applications as soon as possible.
Many analysts have talked about an anticipated timeline of early 2024 for SEC approval of ETFs. bitcoin-news/bloomberg-analysts-raises-approval-chances-of-spot-bitcoin-etf-to-75/” target=”_blank” rel=”noopener nofollow”>Bloomberg analysts estimate that the probability of approval has now increased to 75%.
Steven Schoenfield, now CEO of MarketVector Indexes, had initially given a timeline of “nine to twelve months” for SEC approval. However, the executive has brought out this timeline, considering the recent updates.
While speaking at a panel discussion on ETFs at the CCData Digital Asset Summit in London, Schoenfield said that a btc spot will most likely hit the market in the next “three to six months.”
“The SEC will likely approve all bitcoin spot ETF applications at the same time. I don’t think they want to give an advantage to anyone who is the first to act. Instead of completely rejecting the entire list, they asked for comments, which is a marginal but significant improvement in the dialogue,” Schoenfield said.
BTCUSD is currently trading at $27.830. Chart: TradingView.com
Potential game changer in the market
The top cryptocurrency has bitcoin/arthur-hayes-bitcoin-price-750000-heres-when/” target=”_blank” rel=”noopener nofollow”>witnessed a notable increase of bitcoin spot ETF applications, and an approval could reshape the digital asset market and propel btc to new highs. North America, especially the United States, currently accounts for 98% of all crypto futures ETF trading volume.
Another good chart from the report is this: North America accounts for 98% of all crypto ETF trading volume in the world. If/when spot ETFs come out in the US, this will probably reach 99.5%. pic.twitter.com/nEF7dcaQu4
– Eric Balchunas (@EricBalchunas) August 10, 2023
If approved, a bitcoin spot ETF could unlock a massive influx of capital from institutional investors, up to $17.7 trillion from financial institutions. According to Bloomberg Senior ETF Analyst Eric Balchunas, this would bring North America’s share to more than 99.5%.
BlackRock alone, which currently leads the bitcoin ETF spot charge, has over 9.4 trillion assets under management (AUM). Other Wall Street giants such as WisdomTree, Invesco Galaxy, Valkyrie and VanEck are also awaiting approval.
Featured image from WSJ
