How the SEC is Fighting Out the Crypto World

The SEC is Expected to Approve a Spot Bitcoin ETF

Bloomberg analyst James Seyffart believes the United States Securities and Exchange Commission (SEC) is “backed into a corner” and has a 90% chance of approving a spot Bitcoin exchange-traded fund (ETF) next week.

The filing for the ETF was made by BlackRock in June, and since then the SEC has held numerous meetings with asset managers to address any concerns and make any necessary adjustments. This was followed by the SEC losing a court battle in August with Grayscale, one of the firms in the race, over the conversion of its over-the-counter Grayscale Bitcoin Trust (GBTC) into a listed BTC ETF.

Seyffart disagrees with Matrixport’s report that all proposals may be rejected, stating that the concerns about the approval requirements and Coinbase’s role in surveillance agreements have been addressed through amendments made by asset managers.

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Analysts predict that if the Securities and Exchange Commission (SEC) gives the green light in the coming days, the influx of funds into Bitcoin ETFs could reach up to $10 billion in the first year. This figure pales in comparison to the $100 billion held in gold ETFs in the U.S. alone.

Investors should be aware that the full adoption of crypto assets into portfolios could take weeks or even months, as institutional investors must conduct due diligence before committing to any investments. According to Seyffart, many of the big institutions have an “approved list” and a “not approved list” of assets they can buy.

The SEC is expected to make a final decision on the proposed funds by Jan. 10. Seyffart believes that Grayscale’s conversion process may take a few extra days compared to the other applicants.