Amid the ongoing application amendments, with the US SEC choosing not to appeal the Grayscale Investments case, experts believe the approval of a spot Bitcoin ETF is a matter of when and not if.
With the United States controlling approximately 25 percent of global economic activity, the country’s decisions on the cryptocurrency market are closely watched by investors around the world. In particular, the decision on a Bitcoin exchange-traded fund (ETF) is on every crypto investor’s watch list amid the mainstream adoption of the digital asset. Additionally, the spot Bitcoin ETF will open the door to institutional funds seeking to hedge against high fiat inflation. Additionally, Bitcoin has proven to be a better investment vehicle than traditional instruments such as precious metals, Treasury bonds, and stock market indexes.
Why Bet on a Bitcoin Spot ETF Soon?
The odds of spot Bitcoin ETF approval by Jan. 10 have increased significantly over the past few weeks, according to a memo from Bernstein Research, an independent research arm owned by global asset management firm AllianceBernstein. The Bernstein Research analyst argued that the approval of a spot Bitcoin ETF is a ‘deal’ after recent incidents with the United States Securities and Exchange Commission (SEC). Most importantly, the US SEC lost the case against Grayscale Investments and did not appeal the court decision.
“The market was waiting to see whether the (U.S. Securities and Exchange Commission, or SEC) would appeal the Grayscale decision. “Now that the SEC has decided not to appeal, and is, in fact, actively responding with edits/comments on ETF applications, the likelihood of approval by the January 10 due date is highly likely,” Bernstein Research notes. noted,
interesting thing blackrock inc (NYSE: BLK), which is a major shareholder MicroStrategy Inc (NASDAQ: MSTR), is accumulating Bitcoin at discounted prices amid an anticipated crypto bull run over the next two years due to the fourth halving event. Notably, BlackRock is one of dozens of hedge funds that have filed with the US SEC to offer spot Bitcoin ETFs to their institutional clients. Furthermore, experts have argued that it is simply a matter of when or not the US SEC approves a spot Bitcoin ETF.
With the US SEC having some strict timelines on when to approve a spot BTC ETF, experts argue that the agency may approve multiple applications to avoid taking any further concrete steps.
Long-term impact on the crypto market
The approval of spot Bitcoin ETFs in the United States is expected to have a number of impacts on the entire market over the next months and years. Topping the list, the cryptocurrency market is expected to gain more liquidity amid mainstream adoption by institutional investors. On the negative side, the cryptocurrency market will be heavily regulated by governments, so it will deviate from its initial agenda of economic freedom.
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