In a recent development, analysts at asset management firm Bernstein have predicted when US Securities Commission (SEC) will likely approve the first bitcoin Spot ETF.
When will the first bitcoin spot ETF be approved?
Pending Spot bitcoin ETF applications could be approved early next year, according to analysts. They made this projection in line with the recent tribunal. bitcoin-etf-imminent/” rel=”nofollow”>ruling in the Grayscale casewhich they believe could force the SEC to act.
The court had ruled in favor of Grayscale in a case in which the asset manager argued that the Commission had acted arbitrarily and capriciously by not giving its Spot bitcoin ETF application the same regulatory treatment that it gave to bitcoin futures ETFs. As part of its ruling, the court ordered the Commission to review the application again.
Many saw this as a big win and proof that a bitcoin Spot ETF was imminent, and Bloomberg analysts also weighed in and bitcoin-etf/#:~:text=Odds%20For%20ETF%20Approval%20%E2%80%9C75,weren’t%20approved%20by%20then.” rel=”nofollow”>increasing the probability of these funds pending launch this year at 75%. They stated that “the unanimity and decisiveness of the ruling exceeded expectations,” and the SEC had little or nothing to hang on to.
Bernstein analysts also seem to take this view, noting that the SEC would simply take the “middle road” and be more open to approving these ETFs rather than “inventing another reason to reject them” and sticking to the strict approach they have. . assumed in the crypto industry until now.
This projection also seems feasible since the SEC must decide (approve or deny) on the ARK 21Shares bitcoin ETF before January 10, 2024.
Given that the court has struck down the primary reason why the SEC has continued to reject these requests, the Commission may have difficulty finding another compelling reason to reject the request.
Before that, the SEC is expected to decide on some pending applications. in October. However, the Commission may delay its decision on this matter. one more time.
Comprehensive ETFs for the crypto Asset Management Industry
Bernstein analysts also project that the crypto asset management industry will grow from its current level ($45 billion to $50 billion) to more than $500 billion in the next five years. These ETFs, which they project could launch early next year, are part of the factors they believe could spur such growth.
According to them, there will be greater demand from institutional investors in crypto assets, and funds such as a bitcoin Spot ETF will be their preferred option. A Spot bitcoin ETF will allow these investors to invest directly in the flagship cryptocurrency in a regulated manner.
In line with this, they expect ETFs to own 10% of the market cap of bitcoin and ethereum and “a 5-6% share of liquid crypto hedge funds.”
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2023/09/Market-Analysts-Outline-When-First-Bitcoin-Spot-ETF-Will-Be" alt="Tradingview.com bitcoin Price Chart (bitcoin Spot ETF)” width=”2884″ height=”1746″ loading=”lazy”/>
btc price sitting above $26,000 | Source: BTCUSD on Tradingview.com
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