By
Josh O'Sullivan
April 30th, 2024
The approval of spot Bitcoin ETFs could signal a growing acceptance of cryptocurrencies within traditional financial circles.
Recent statements from key figures and developments within major financial institutions suggest that the US Securities and Exchange Commission (SEC) may approve spot Bitcoin Exchange-Traded Fund (ETF) applications from several prominent companies today.
Hints and Speculations of Bitcoin ETF Approval
In a recent post on the X platform, Jacquelyn Melinek, a senior crypto analyst at TechCrunch, claimed to have received information from sources closely associated with the matter. According to her post, the SEC is expected to greenlight multiple firms’ applications for a Bitcoin spot ETF. Melinek heightened expectations for “something tomorrow”, leaving the crypto community eagerly awaiting official confirmation.
SkyBridge Capital CEO Anthony Scaramucci added fuel to the fire with a simple yet cryptic post that read:
“It’s done.”
Although lacking specific details, this post sparked a flurry of speculation among his followers. Responding to inquiries, followers questioned whether Scaramucci’s proclamation referred to the approval of a Bitcoin ETF. One follower even cheekily asked, “Done, as in, ETF approved?”
Adding credibility to the rumors, Eric Balchunas, a Bloomberg ETF analyst, provided additional context, stating that the SEC is in the process of delivering final comments. Balchunas emphasized that while this is as close to being “done” as the industry has seen, there has been no official confirmation of approval. These insights contribute to the narrative that the SEC is progressing toward a potentially positive decision on spot Bitcoin ETFs.
Meanwhile, the recent meeting scheduled by the SEC with top stock exchanges, including Nasdaq, Cboe, and the New York Stock Exchange, further indicates progress towards ETF approval. Nasdaq, having submitted its 19b-4 form for BlackRock’s iShares Bitcoin Trust, engaged in a routine meeting with SEC staff.
This meeting is seen as a positive sign, suggesting that the SEC is moving closer to approving some or all of the twelve ETF applications from prominent financial institutions.
In a notable development, Goldman Sachs Group Inc (NYSE: GS) is reportedly in talks with BlackRock Inc (NYSE: BLK) and Grayscale Investments to potentially play a pivotal role in their proposed spot Bitcoin ETFs. If approved, Goldman Sachs could serve as an authorized participant, facilitating the purchase and redemption of shares directly from the ETF, in line with SEC regulations.
Market Impact of Spot Bitcoin ETFs Approval
If the SEC greenlights the spot Bitcoin ETF applications today, it could trigger a domino effect in the crypto market. Institutional capital, which has been cautiously eyeing the crypto space, may flow into Bitcoin through these SEC-approved ETFs, potentially driving up the price of the digital asset.
Additionally, the approval of spot Bitcoin ETFs could signal a growing acceptance of cryptocurrencies within traditional financial circles. The legitimization of Bitcoin through regulated investment products may pave the way for increased integration of digital assets into mainstream investment portfolios.
These sentiments have triggered a rebound in the price of Bitcoin which is now up 2.3% in the past 24 hours to $43,808.44 per data from CoinMarketCap.