Bitcoin ETFs on the Horizon

Martin Walker
Oct 21, 2023 at 02:10 pm

In a report released on Wednesday, Wall Street analysts from JPMorgan and Bloomberg Intelligence have made a rather optimistic projection. They suggest that there is a strong likelihood that the U.S. Securities and Exchange Commission (SEC) will grant approval for a Bitcoin Exchange-Traded Fund (ETF) before January 10, 2024, despite the SEC's reservations regarding cryptocurrencies.

JPMorgan, in particular, anticipates the arrival of Bitcoin ETFs within the next few months, which has been a subject of eager anticipation in the crypto markets. Earlier this week, there was an erroneous report claiming that the SEC had already given its nod to a Bitcoin ETF, leading to a significant surge in Bitcoin's price, which reached $30,000.

Simultaneously, institutional investors are eagerly awaiting the SEC's green light to gain exposure to digital assets in their portfolios. The introduction of an ETF tracking spot Bitcoin prices is expected to invigorate the crypto markets, drawing substantial institutional investments from hedge funds. This development is noteworthy, considering that the SEC has already sanctioned Bitcoin futures ETFs.

Nonetheless, SEC Chair Gary Gensler has refrained from disclosing the regulatory agency's precise stance on the surging demand for a Bitcoin price ETF, leaving the crypto community in suspense.

Paul Grewal, the Chief Legal Officer at Coinbase, expressed optimism, stating that he expects the SEC to approve ETF applications in the near future. He emphasized that these applications should align with existing laws and further noted that the firms presenting strong proposals for these financial products and services are some of the industry's most reputable entities.

Despite growing anticipation, Gensler's recent interview with Bloomberg yielded only general comments, providing limited insight into the SEC's intentions regarding ETFs. In the wake of the anticipated SEC approval, JPMorgan foresees competition among hedge funds eager to offer exchange-traded funds linked to Bitcoin prices.

Moreover, Ark Invest CEO Cathie Wood, in a recent Bloomberg interview, voiced her expectation that the SEC will simultaneously approve multiple Bitcoin ETF proposals. Prominent companies such as BlackRock, Invesco, WisdomTree, Fidelity, and numerous others have submitted their proposals for consideration.

Read more: Crypto Market Surges

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