The prospect of a Bitcoin exchange-traded fund (ETF) being approved in the U.S. has gained momentum in recent weeks.
According Bloomberg analysts, the odds of a spot Bitcoin ETF getting a green light from the Securities and Exchange Commission (SEC) now stand at 75%. This marks a dramatic shift from earlier in the year when hopes of approval seemed slim.
JUST IN: Spot #Bitcoin ETFs now have a 75% chance of being approved, according to Bloomberg analysts.
— Watcher.Guru (@WatcherGuru) August 30, 2023
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Key Developments
Investment firm Bitwise is on tenterhooks as it awaits a decision from the U.S. Securities and Exchange Commission (SEC) on its proposed Bitcoin ETF. The verdict is slated for September 1, 2023, and could serve as a bellwether for future approvals.
The SEC has previously expressed reservations about approving spot Bitcoin ETFs, citing the lack of a sufficiently regulated crypto market to deter market manipulation. This stance has been a significant roadblock for many firms vying for ETF approval.
In a landmark case, Grayscale Investments has successfully won a lawsuit against the SEC concerning its Bitcoin ETF. This legal triumph could potentially set a precedent, bolstering the chances of approval for other pending Bitcoin ETF applications.
Following the SEC’s approval of ProShares’ ETF backed by Bitcoin derivatives, Grayscale has pivoted its strategy. The firm now aims to pursue an ETF backed directly by Bitcoin, rather than derivatives, signaling a shift in market sentiment and regulatory openness.
Conclusion
These developments are undoubtedly positive, but the path to Bitcoin ETF approval remains fraught with regulatory hurdles. The SEC’s scrutiny is far from over, and the market is keenly watching how these events will unfold. Yet, the tide seems to be turning, and the 75% approval odds cited by Bloomberg analysts could be a harbinger of a new era for Bitcoin and the broader cryptocurrency market.
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