Former SEC Employee Says Spot Bitcoin ETF Is ‘A Matter of Months’
The cryptocurrency market has become a major focus of attention, especially as a spot Bitcoin Exchange Traded Fund (ETF) has become abuzz with speculation. Many investors and experts think that if a Bitcoin ETF is approved, the cryptocurrency market will grow further and attract more institutional investment.
The Securities Exchange Commission (SEC), led by Gary Gensler, takes a very careful and meticulous approach to approving cryptocurrency ETFs. However, some industry members, such as Neel Maitra, are making hopeful predictions that a spot Bitcoin ETF could be approved within months.
Neel Maitra, a friend of Wilson Sonsini and former member of SEC Chairman Gary Gensler’s crypto division, made a prediction that a spot Bitcoin ETF could transform within months, Benzinga reported Oct. 27.
One of the implications of these hopeful predictions is that spot Bitcoin prices are having a strong development with the futures markets. So, this close relationship between spot and futures prices may alleviate market manipulation concerns. There is more regulation and supervision in the futures markets, while the spot market is less regulated. Therefore, the similarity between futures and spot prices can be seen as a factor supporting the approval of the spot Bitcoin ETF.
“The high-level parameters indicate that the spot BTC ETF is something that could actually be approved and begin trading within a few months,” she said.
SEC Potentially Embracing the Crypto Industry
In her view, the possible replication of a spot Bitcoin ETF is in line with growing sentiments that cryptocurrency is warming to the SEC’s embrace of digital assets and related financial products.
It is important to note that the resurgence of ETF-related speculation comes after the SEC previously rejected crypto ETF applications. The rejection of Grayscale’s attempt to convert its GBTC Bitcoin fund into an ETF and its decision to issue a day-to-day trial of a valid report may have called into question the SEC’s policies in this area.
Following the SEC’s rejection of Grayscale’s attempt to convert the GBTC Bitcoin fund into an ETF, the growth of the processes and the judge’s support of this decision can be seen as a positive step towards the approval of spot Bitcoin ETFs. This decision by the SEC shows that the futures market is in a healthy state with more regulation and supervision and better protection for investors.
Additionally, interest from major financial players such as BlackRock in Bitcoin ETFs increases the scope for this type of approval. The inclusion of BlackRock’s Bitcoin ETF in a listing overseen by the Depository Trust and Clearing Corp raises hopes that this product could be approved in the near future.
Importance of Spot ETF in Crypto
The possibility of a Bitcoin ETF gaining approval is causing a great deal of excitement in the cryptocurrency space as this type of product has the potential to attract institutional investors to cryptocurrencies and offer them a more easily accessible and accessible way. An ETF for institutional money could make it easier to invest in cryptocurrencies, which could contribute to the growth and launch of the cryptocurrency market.
Meanwhile, Bitcoin continues to target the $35,000 level after gaining over 15% in a week following ETF speculation.