With the US SEC opting not to appeal the Grayscale Investments case, amid ongoing application amendments, experts believe the approval of spot Bitcoin ETF is a matter of when and not if.
With the United States controlling approximately 25 percent of global economic activities, the country’s decisions on the cryptocurrency market are closely monitored by investors from all over the world. Specifically, the decision on the spot Bitcoin exchange-traded funds (ETFs) is on every crypto investor’s watchlist amid the mainstream adoption of digital assets. Furthermore, the spot Bitcoin ETF will open floodgates for institutional funds seeking to hedge against high fiat inflation. Additionally, Bitcoin has proved to be a better investment vehicle than traditional instruments like precious metals, treasury bonds, and stock market indexes.
Why Bet on Bitcoin Spot ETF Soon
According to a memo from Bernstein Research, an independent research arm owned by the global asset management firm AllianceBernstein, the probability of a spot Bitcoin ETF approval by January 10 has significantly increased in the past few weeks. The analyst at Bernstein Research argued that the approval of a spot Bitcoin ETF is a ‘done deal’ following recent happenings with the United States Securities and Exchange Commission (SEC). Most importantly, the US SEC lost the case against Grayscale Investment and did not appeal the court’s decision.
“The market was waiting to see if (the US Securities and Exchange Commission, or SEC) would appeal against the Grayscale verdict. Now that SEC has chosen not to appeal, and actually, has been actively responding with edits/comments on the ETF applications, the probability of approval by the Jan. 10 due date looks highly likely,” the Bernstein Research memo noted.
Interestingly, BlackRock Inc (NYSE: BLK), which is a major shareholder in MicroStrategy Inc (NASDAQ: MSTR), has been accumulating Bitcoins at discounted prices amid an anticipated crypto bull run in the next two years triggered by the fourth halving event. Notably, BlackRock is among the dozens of hedge funds that have applied with the US SEC to provide a spot Bitcoin ETF to their institutional customers. Moreover, experts have argued that it is only a matter of when and not if the US SEC approves a spot Bitcoin ETF.
With the US SEC having some tight timelines on when to approve a spot BTC ETF, experts argue that the agency could approve several applications to avoid giving any firm steps ahead.
Long-Term Impacts on Crypto Market
An approval of spot Bitcoin ETF in the United States is expected to have several impacts on the entire market in the subsequent months and years. On the top list, the cryptocurrency market is expected to get more liquidity amid mainstream adoption by institutional investors. On the negative impact, the cryptocurrency market will be heavily controlled by governments, hence deviating from its initial agenda of economic freedom.