Blackrock ensures new optimism: Spot bitcoin ETFs could be approved, says former SEC chairman

Blackrock ensures new optimism: Spot bitcoin ETFs could be approved, says former SEC chairman

Spot-Bitcoin Exchange Traded Funds (ETFs) could possibly be approved in the United States if the Bitcoin spot market can demonstrate the same "effectiveness" as the appointment market, according to the former chairman of the Securities and Exchange Commission (SEC), Jay Clayton. Clayton commented positively about a possible Bitcoin ETF and explained that it would be difficult for the Sec to argue that a spot ETF could not be approved because there are already futures-based products. Clayton also emphasized that the fact that institutions want to put their names on a spot bitcoin ETF indicate that the spot market for Bitcoin has developed and mature.

The inclusion of a spot-based Bitcoin ETFs in the USA has again attracted great attention after Blackrock, the world's largest asset manager, applied for such an ETF in June. Other companies such as Wisdomtree and Investco have also submitted similar applications. So far, the SEC has rejected all attempts to introduce a spot bitcoin ETF because it had concerns about the unregulated and manipulable nature of the spot bitcoin markets. Instead, the regulatory authority has asked the industry to offer only ETFs that are secured by Bitcoin futures contracts and are traded on the regulated appointment exchange CME.

The almost perfect success record of Blackrock when approval of ETF applications has excited the market, and many now see the possibility that the SEC could change its attitude on this topic. So far, only one of the 576 ETF applications from Blackrock has been rejected by the Sec. This new optimism in terms of spot bitcoin ETFs could mean that the approval of such a ETF is closer.

It remains to be seen how the SEC will deal with Spot-Bitcoin ETFs in the future. The decision depends to a great extent on the development and maturity of the Bitcoin spot market. If this market can demonstrate the same effectiveness as the appointment market, a Bitcoin ETF in the USA could be approved. The decision of the SEC is expected with great tension from both crypto enthusiasts and institutional investors, as this would enable the way for more mainstream participation in the cryptocurrency.