Spot Bitcoin ETF in America is ‘Inevitable:’ Former SEC Chair Claims

A former SEC chair has stated that the approval of a Spot Bitcoin ETF in the United States is inevitable. This news suggests a positive outlook for the crypto space and Bitcoin investors, as an ETF would make it easier for traditional investors to participate in the market.

The former Chairman of the US Securities and Exchange Commission (SEC), Jay Clayton, believes that the regulatory agency is likely to approve the launch of a spot Bitcoin exchange-traded fund (ETF) in the near future. The SEC recently decided to delay the applications of BlackRock and other finance giants who were seeking to introduce a spot BTC ETF. Clayton predicts that progress in this area could be seen within the next 45 days, which is the timeframe in which the SEC is expected to announce its decision once again.

Clayton, who served as the Chairman of the SEC from 2017 to 2020, expressed his opinion on the spot BTC ETF topic, stating that the Commission will ultimately approve a spot ETF. He highlighted the dichotomy between a futures product and a cash product, suggesting that this discrepancy cannot continue indefinitely. He believes the decision to greenlight a spot ETF is inevitable.

Although Clayton did not directly answer whether the Commission would have approved a spot BTC ETF under his leadership, he expressed optimism that the SEC might be inching closer to a positive decision in October instead of resorting to excuses for further delays or rejections.

The SEC was given additional time by the DC Circuit to reassess and develop reasons either for or against approving a spot BTC ETF. However, Clayton does not perceive any valid reasons for rejecting such applications and anticipates a more favorable outcome.

Despite the lack of success with local companies’ attempts, the potential approval of a spot BTC ETF in the US has gained attention. This time, some well-established financial institutions like BlackRock, Invesco, Fidelity, WisdomTree, and VanEck are among those filing applications for a spot ETF. This shift in participation from major players in the finance industry suggests that the SEC may be more inclined to change its stance.

Experts, including Bloomberg Intelligence, expected the approval to have already been granted. However, the SEC chose to extend the evaluation period by an additional 45 days. This decision affords the regulator the opportunity to thoroughly assess the pros and cons of the various proposals.

Clayton further emphasized the high demand for Bitcoin exhibited by both retail and institutional investors. He believes that Bitcoin is not a security and highlighted the interest expressed by trusted providers in offering this product to the retail public. The current SEC chairman, Gary Gensler, agrees with this assessment and has classified Bitcoin as a commodity, comparable to precious metals, oil, and natural gas.

In summary, Jay Clayton, the former Chairman of the SEC, anticipates the eventual approval of a spot Bitcoin ETF. He sees progress being made within the next 45 days and believes that a spot ETF is inevitable due to the strong demand for Bitcoin from retail and institutional investors. The SEC’s decision to delay applications from major financial institutions suggests a potential shift in its stance.

Leave a Comment

Google News