The anticipated launch of a spot Bitcoin ETF in early 2024 has ignited optimism within the crypto market, prompting speculation about a potential turnaround. Recent comments from U.S. SEC Chair Gary Gensler have further fueled this anticipation. He acknowledged the previous denial of spot Bitcoin ETF applications but revealed a significant development, stating, “So we’re taking a new look at this based on those court rulings.”
Gensler’s statements may have signaled a potential shift in regulatory stance towards the crypto fund. While reactions within the community are mixed, some view it as a positive step forward, saying, “Sounds like progress! Let’s see where this new look takes us. Exciting times for Bitcoin!” However, skepticism remains, with few expressing doubt about Gensler’s approval: “He’s taking a new look at them. He’s still not approving it. He will come up with another reason, and he’s already told us what that is.”
BTC proponents argued things might change this time, asserting that Gensler cannot afford to be “arbitrary and capricious, as previously allowing futures ETFs has sealed his fate here.” “He doesn’t want to do it, but there’s no choice. With 8–12 filings under consideration at the SEC, brace for a crypto takeover on US stock exchanges.”
The United States Securities and Exchange Commission has resorted to postponing its decision on several proposals for spot Bitcoin exchange-traded funds and opting to extend the review process. Despite that, the crypto ETF landscape continues to attract institutional interest from leading AUMs. Recently, BlackRock, the world’s largest asset manager, made a major change to its proposed spot bitcoin ETF that could appeal to Wall Street banks. The change allows authorized participants [APs]—the entities that create and redeem ETF shares—to use cash instead of bitcoin.
Bitcoin ETF Approval Could Boost $72B AUM In 5 Years—Bitwise
This could be a potential game-changer, as regulatory constraints prohibit most U.S. banks from holding cryptocurrencies. Embracing cash provides opportunities to navigate through challenges and potentially become authorized participants for BlackRock’s Bitcoin ETF, especially in the event of approval by U.S. regulators. APs play a crucial role in the ETF ecosystem, ensuring the fund’s price stays close to its underlying asset’s value.
Several market observers have predicted a bullish positive trajectory for BTC in the event of approval for spot ETFs. Research analysts at Bitwise recently foresaw an estimated capture of 1% of the $7.2 trillion U.S. ETF market; these spot Bitcoin ETFs could amass $72 billion in assets under management within five years.