Bloomberg analyst James Seyffart has shed light on the US Securities and Exchange Commission's (SEC) current situation regarding the approval of a spot Bitcoin exchange-traded fund (ETF). In a recent private webinar with CryptoQuant, Seyffart noted that there is a 90% chance of the SEC greenlighting the ETF. He argued that in light of the recent court ruling, the SEC needs to come up with new reasons for rejecting or granting approval favoritism Grayscale on converting its Bitcoin Trust into an ETF.
Asset managers are adapting to SEC requirements
There has been a lot of activity since BlackRock's application in June. SEC officials held extensive meetings with asset managers, addressing concerns and suggesting changes. Seyffart disagreed with Matrixport's opinion forecast about possible rejections and noted the progress asset managers have made in meeting the SEC's requirements, particularly with regard to monitoring agreements with platforms such as Coinbase.
Final decision on Bitcoin ETFs
Eric Balchunas, another industry analyst, confirmed the advanced stage of the approval process. He tweeted:
“As we speak, the SEC is making its final comments, then issuers will file final 19b-4s and S-1s soon after.”
This statement is consistent with Jacquelyn Melinek's report from sources very close to the matter: “SEC Will Approve Bitcoin Spot ETF for Multiple Companies’ Applications.”
Potential market impact and institutional caution
Seyffart predicts a major impact on the market with a potential $10 billion inflow into Bitcoin ETFs in the first year. However, he warned that reaching the $100 billion mark, similar to US gold ETFs, could take longer. He also emphasized caution Approach by institutional investors who require thorough due diligence and often rely on approved investment lists, indicating a gradual adoption process among experienced traders.
Significantly, the cryptocurrency sector is eagerly awaiting the SEC's final decision, which is due on January 10th. Seyffart expects a joint nod from all applicants, although Grayscale's transition may take a few more days. This decision could mark a transformative moment in the crypto market and set a new precedent for institutional investment in cryptocurrencies.
Also read: Spot Bitcoin ETF: Survey Shows Advisers' Optimism Is Lower Than Expected
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