Bitcoin ETF Expected Within Months, Says Former SEC Insider

Amid mounting anticipation, experts predict the imminent approval of a spot Bitcoin ETF, reshaping the cryptocurrency landscape.

Gary Gensler sitting in the dark looking at a sand clock as time passing by.
Created by Gabor Kovacs from DailyCoin
  • Industry experts have foreseen a game-changing development in the cryptocurrency market.
  • A key figure has hinted at the imminent arrival of a Bitcoin Spot ETF.
  • A well-known investment firm’s move has sparked intrigue in the crypto world.

The cryptocurrency market has captured significant attention lately due to speculations about the potential approval of a spot Bitcoin Exchange-Traded Fund (ETF) by the Securities Exchange Commission (SEC)

Is the Spot Bitcoin ETF Approval Round the Corner?

As anticipation continues, numerous industry experts have offered their predictions, each proposing different timelines for when this product might finally gain approval.

Neel Maitra, a partner at Wilson Sonsini and a former member of the SEC chairman Gary Gensler’s crypto division, recently made a noteworthy prediction. He suggested that the spot Bitcoin ETF might become a reality within months, according to a report by Benzinga on October 27.

Maitra underlined a pivotal factor that supports the approval of a spot Bitcoin ETF: the strong correlation between Bitcoin futures and the spot market. This connection implies that concerns regarding potential market manipulation might be exaggerated, which is a critical argument against approving a spot ETF.

SEC More Open to Bitcoin, Spot ETF May Be Approved

In his perspective, the potential approval of a spot Bitcoin ETF aligns with the prevailing sentiment within the cryptocurrency industry, indicating that the SEC is gradually becoming more receptive to digital assets and related financial products.

The growing enthusiasm can also be attributed to including BlackRock’s Bitcoin ETF in a list supervised by the Depository Trust and Clearing Corp. This clearinghouse, associated with Nasdaq, manages stocks and ETFs.

On the Flipside

  • The strong correlation between Bitcoin futures and the spot market may not necessarily eliminate concerns over market manipulation.
  • While the SEC has seen a shift in sentiment regarding digital assets, the history of consistent rejections raises questions about the likelihood of sudden and swift approval for a spot Bitcoin ETF.
  • The judge’s ruling that the SEC had no valid grounds to reject Grayscale’s ETF application might not be a definitive indicator of a broader change in the SEC’s stance.

Why This Matters

Neel Maitra’s prediction of a potential spot Bitcoin ETF approval signals a crucial shift in the SEC’s stance towards digital assets. This development not only opens doors for broader investment opportunities but also reinforces the growing acceptance of cryptocurrencies and their financial products in the mainstream financial landscape.

To learn more about potential legal challenges surrounding SEC-approved Bitcoin ETFs, read here:
JPMorgan Predicts Possible Lawsuits for SEC Over Bitcoin ETFs

To gain insight into the recent developments following the SEC’s meeting with Hashdex regarding a Bitcoin ETF, read here:
What Happened at the SEC and Hashdex Bitcoin ETF Meeting?

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.