The price of bitcoin has been on a fascinating run in recent weeks, largely due to talks about the possible approval of a bitcoin spot ETF (exchange-traded fund) in the United States. And there has been extensive commentary on what will happen to the leading cryptocurrency if the Securities and Exchange Commission (SEC) greenlights current applications for a spot ETF.
Cantor Fitzgerald, a prominent investment and brokerage firm, is among the latest entities to weigh in on the possibility and potential impact of a bitcoin spot ETF in the United States.
Here’s Why Cantor Fitzgerald Thinks bitcoin Spot ETF Will Be Approved
According to a bitcoin-spot-will-win-approval” target=”_blank” rel=”noopener nofollow”>Bloomberg ReportJosh Siegler and Will Carlson, research analysts at Cantor Fitzgerald, are “increasingly confident” that the long-awaited bitcoin spot ETF would receive approval from the SEC in the US.
Analysts at Cantor Fitzgerald believe it is more likely that the SEC, which has been reluctant to approve the bitcoin investment product due to various market concerns, will now give the green light to the recently filed, amended applications.
The report noted that “a comprehensive shared surveillance agreement with a regulated market of significant size” could force the SEC to act. Interestingly, all pending spot ETF filings now appear to include a shared monitoring agreement to detect and address market irregularities.
Additionally, Cantor analysts cited the recent ruling in favor of Grayscale, which overturned the SEC’s rejection of the asset manager’s proposal to convert its bitcoin trust into an ETF. Siegler and Carlson added:
Ultimately, the court found that the SEC failed to explain why it approved bitcoin futures ETFs but rejected Grayscale’s spot offering, despite substantial evidence that the two products are similar, on several regulatory factors.
Finally, Siegler and Carlson believe that “the approval of a bitcoin spot ETF is the most important short-term catalyst for the price of bitcoin.” To support this claim, analysts cited the top cryptocurrency’s latest price rally, which began with an erroneous headline that BlackRock’s ETF had been approved.
Cantor Fitzgerald analysts added:
The approval of a bitcoin spot ETF in the US will be “a watershed moment” for the long-term adoption and legitimization of bitcoin.
bitcoin Price Overview
At the time of writing, bitcoin is trading at $34,104, up a paltry 0.2% in the last 24 hours. The market leader has been moving mostly sideways since failing to close above $35,000 (its highest level in almost 18 months) earlier this week.
However, btc has maintained a large portion of its gains in the weekly period, with a substantial 13.2% gain over the past seven days. Meanwhile, the top cryptocurrency is up nearly 27% in the past two weeks, according to bitcoin” target=”_blank” rel=”noopener nofollow”>CoinGecko Data.
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bitcoin price thickens on the daily timeframe | Source: BTCUSDT chart on TradingView
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