Prospects for Approval of BTC Spot ETFs: Former BlackRock Director Shares Optimistic Predictions
Date: 2023-10-05 Author: Dima Zakharov Categories: BUSINESS
Former BlackRock Director Assesses Prospects for Approval of Spot BTC-ETFs
One of the most significant developments in the world of cryptocurrencies revolves around the potential approval of spot ETFs (Exchange-Traded Funds) linked to Bitcoin. These ETFs represent funds traded on the stock exchange and are tied to assets, in this case, Bitcoin. Stephen Shenfield, the former Managing Director of the major financial company BlackRock, has shared his insights on this matter.
Currently, the approval of Bitcoin ETFs is a pivotal milestone in the cryptocurrency market, as it could attract more institutional investors to the world of cryptocurrencies and provide broader access to this asset. Shenfield stated that the question of approval is no longer about "if," but about "when." He expressed an optimistic forecast, suggesting that applications for approval will be granted by the SEC (U.S. Securities and Exchange Commission) within the next 3-6 months.
This statement serves as a significant signal for the cryptocurrency market, as the influx of institutional investors could substantially increase investments in Bitcoin. Shenfield predicts that the approval of ETFs will lead to an inflow of institutional capital ranging from $150 billion to $200 billion into investment products linked to Bitcoin over the next three years.
Previously, Stephen Shenfield had speculated that the approval process for spot cryptocurrency funds might take a longer timeframe, up to 9-12 months. However, the situation has evolved in light of recent SEC decisions. The SEC has become less inclined to reject such applications outright and, instead, is leaning towards postponing and further review.
One of the key factors influencing this shift is the victory of Grayscale in its legal battle against the SEC
This judicial decision significantly increases the likelihood of Bitcoin trusts from Grayscale being reclassified as full-fledged spot cryptocurrency funds.
BlackRock, one of the world's largest asset management corporations with assets exceeding $9.4 trillion, has also expressed interest in creating spot BTC-ETFs and has submitted the corresponding application to the SEC. Currently, there is intense competition among major U.S. asset management companies for the right to establish such funds.
Overall, the prospects for the approval of spot BTC-ETFs appear promising, and this could have a significant impact on the cryptocurrency market by attracting new investors and expanding legal access to Bitcoin.
