Abuzz with the potential approval of a spot Bitcoin BTC 0.01% ETF (Exchange-Traded Fund) in the U.S., with Bitcoin prices witnessing significant gains in anticipation.
As investors bet on the approval of the first U.S. ETF that would directly invest in Bitcoin, the cryptocurrency’s price surged notably.
Recent reports suggest that the Securities and Exchange Commission (SEC) is on the brink of approving the first spot Bitcoin ETF. This speculation was fueled when asset management giant BlackRock listed its iShares Bitcoin Trust under the ticker IBCT with the Depository Trust & Clearing Corporation (DTCC).
However, the listing was later removed from the DTCC website, causing a temporary halt in Bitcoin’s rally.
Despite this, Bitcoin’s price has risen by over 30% since late August. This uptrend was influenced by a federal appeals court in Washington D.C. overturning the SEC’s attempt to block Grayscale Investments’ application for a spot Bitcoin ETF. The court deemed the SEC’s decision to approve two Bitcoin future ETFs while rejecting the spot market fund as “arbitrary and capricious.”
Coinbase, the largest crypto exchange in the U.S., expressed confidence in the approval of a U.S. Bitcoin ETF. Paul Grewal, Coinbase’s Chief Legal Officer, highlighted the SEC’s recent court defeat, where the regulator failed to block Grayscale from converting its GBTC Bitcoin fund into an ETF. Grewal emphasized that the SEC’s inability to reject applications arbitrarily suggests that the commission will soon fulfill its responsibilities.
However, Grayscale’s journey to secure a spot Bitcoin ETF has not been without challenges. The New York State Attorney General recently filed a lawsuit against Grayscale’s parent company, Digital Currency Group (DCG), accusing it, along with crypto exchange Gemini and DCG subsidiary Genesis, of defrauding investors of over $1 billion.
This lawsuit could potentially hinder Grayscale’s efforts to list its product on the New York Stock Exchange.
Despite the legal challenges, market analysts remain optimistic about the future of Bitcoin and the potential approval of a spot ETF.
The overall sentiment suggests that while there might be short-term sell-offs, the long-term outlook for these products remains bullish for Bitcoin.
Experts from the blockchain consulting firm Venn Link Partners believe that the approval of a U.S. spot Bitcoin ETF might trigger short-term selling. However, they also emphasized that these products would continue to be bullish for Bitcoin in the long run.
