By
Bena Ilyas
May 9th, 2024
The US SEC is under pressure from several institutional investors – including BlackRock, Fidelity, WisdomTree, and Valkyrie – to approve a spot Bitcoin ETF.
The recent Bitcoin ETF frenzy has undoubtedly ignited the long-term prosperity of the cryptocurrency market, not only in the United States but also around the world. On-chain analysis conducted by Santiment shows that about 15.8k Bitcoin addresses holding at least 100 coins have accumulated a total of 11.5 million BTCs. Interestingly, the cohorts’ collective share increased by about 27.7k Bitcoins in the past 12 weeks. The analysis is a clear indication that more money is flowing into the Bitcoin market irrespective of the price action.
However, institutional investors are more likely to tap on the spot Bitcoin ETF products for safety and liquidity issues. As a result, more investment fund managers in the United States led by BlackRock Inc (NYSE: BLK) have already filed for a spot Bitcoin ETF with the United States Securities and Exchange Commission (SEC).
Bloomberg Analysts on Spot Bitcoin ETF in the US
According to Bloomberg Intelligence analysts, the odds of the SEC approving a spot Bitcoin ETF before the end of this year have dramatically increased. Led by analysts James Seyffart and Eric Balchunas, Bloomberg Intelligence raised its estimates for the SEC approving spot Bitcoin ETF before the end of this year from 50 percent to 65 percent.
In a recent interview with Bloomberg, SEC chair Gary Gensler did not issue his former stance on the crypto market, with an argument that there are four other commissioners to make the decision. The pressure from both sides of the political aisle has pushed Gensler to reshape his stance on digital currencies. Moreover, the SEC largely lost in the Ripple lawsuit after Judge Analisa Torres argued that exchange sales are non-securities.
“The deflection seemed a change in the way he normally handles these topics. We believe this may be a signal that aspects of the anti-crypto stance are becoming politically untenable for Gensler,” the Bloomberg analysts noted.
Additionally, the analysts highlighted that the SEC has significantly approved Coinbase Global Inc (NASDAQ: COIN) as a crypto trading platform. As a result, analysts are convinced that the SEC’s approval of a crypto ETF will largely clean on a Bitcoin product. Moreover, the exchange has acted as a more prominent surveillance-sharing agreement partner and custodian in many of the Bitcoin ETF filings.
Market Outlook
The cryptocurrency market has significantly matured from test technology to a full-blown economy with more than 420 million users around the world. The mainstream adoption of digital assets is expected to take place in the coming years, with DeFi platforms simplifying the use of blockchain-related products like smart contracts. Furthermore, more countries have enacted crypto-friendly regulations in the past two years amid increased demand for digital assets.