Former SEC Chair Asserts Inevitability of Spot Bitcoin ETF Approval in the United States
Former SEC chairman Jay Clayton asserted today that the approval of a spot Bitcoin exchange-traded fund (ETF) is “inevitable,” even as the U.S. Securities and Exchange Commission (SEC) has postponed decisions on several ETF proposals for a 45-day period.
These remarks coincide with a jubilant atmosphere in the cryptocurrency industry. The likelihood of a spot Bitcoin ETF being approved by the end of 2023 has improved significantly, thanks to a recent court ruling in favor of Grayscale Investments. The D.C. Circuit Court of Appeals has mandated the SEC to reevaluate Grayscale’s application, marking a significant development in the path toward transitioning the substantial Grayscale Bitcoin Trust (GBTC) into an ETF.
The Approval of a Spot Bitcoin ETF is a Certainty
Former SEC chief Jay Clayton remains confident that the approval of a spot Bitcoin ETF will eventually occur.
In an interview with CNBC on Friday, Clayton highlighted the growing involvement of traditional financial heavyweights in supporting spot Bitcoin products, indicating a notable shift in how retail investors can access BTC exposure without the complexities of managing a wallet or purchasing the cryptocurrency directly.
On Thursday, the Securities and Exchange Commission extended its decision timeline until October for applications from BlackRock, Fidelity, VanEck, Invesco Galaxy, WisdomTree, Valkyrie, and Bitwise. These crypto-heavy and traditional finance firms now face an additional 45-day waiting period for the SEC to either approve, deny, or further postpone their ETF applications. Clayton expressed his hope for progress in this regard, emphasizing that “approval is inevitable.”
He also emphasized the need to address the “dichotomy” between futures-based investment products and cash products, suggesting that this situation cannot persist indefinitely. Clayton’s perspective aligns with that of U.S. Court of Appeals Circuit Judge Neomi Rao, who asserted that the SEC had already granted regulatory approval to Bitcoin futures ETFs and pointed out the similarity between Grayscale’s offering and such products.
The Grayscale ruling has been seen as a positive development in a market grappling with regulatory challenges and a series of high-profile company bankruptcies. As reported by ZyCrypto, analysts have raised their estimates for the approval and launch of at least one spot Bitcoin ETF in the U.S. this year to 75% following the Grayscale decision.
