Bitcoin ETF Approval Anticipated by Year-End Amid Changing SEC Position

The changing environment surrounding digital assets and the push for clearer regulations may lead to a shift in the U.S. Securities and Exchange Commission’s (SEC) approach to Exchange-Traded Funds (ETFs) by the close of 2023. This insight was shared by Mike Novogratz, CEO of Galaxy Digital, during a SquawkBox interview that was highlighted in a recent tweet by Collin Brown.

Novogratz pointed out the inconsistencies in the SEC’s current framework, which permits futures ETFs but not cash-based ones. He stressed the high demand from the American public for these offerings. Additionally, he mentioned that SEC Chairman Gary Gensler faces significant pressure from major industry players including BlackRock, Fidelity, Grayscale, and Invesco to cater to this demand.

This pressure is intensified by the rapidly evolving landscape of digital assets and a coordinated call for regulatory clarity from cryptocurrency advocates, despite their vested interests. Public sentiment, applications, and an anticipated positive market reaction collectively indicate an increasing optimism toward the approval of Bitcoin ETFs.

On Friday, Melker also expressed expectations for the approval of Bitcoin spot ETFs, attributing this to changing conversations within the SEC and a supportive message from Andrew. This speculation aligns with Novogratz’s earlier comments and Gensler’s ongoing consideration of the matter.

The pursuit of Bitcoin spot ETFs began with an application from the Winklevoss Twins in 2013. If these ETFs receive approval, they would designate Bitcoin as a compliant security for trading on stock exchanges. Factors influencing this potential transition include Grayscale Investments’ recent litigation loss, pressure from legislators and industry leaders, and a misleading news application from BlackRock.

Larry Fink of BlackRock highlighted Bitcoin’s appeal as a "flight to quality," suggesting that investors are keen to gain exposure. The approval of Bitcoin spot ETFs could potentially trigger the next bullish market cycle for Bitcoin, as indicated by a recent rapid market rally.

This article was created with the assistance of AI and reviewed by an editor.