Will the SEC’s latest setback accelerate the approval of BTC ETF applications?
- As the largest crypto exchange in the United States, Coinbase stands to benefit from the potential approval of a Bitcoin ETF.
- Grewal remains optimistic about the future of Bitcoin ETFs and believes that the SEC will impartially and legally process pending ETF applications.
In a recent development, Coinbase’s Chief Legal Officer, Paul Grewal, expressed confidence in the eventual approval of a U.S. Bitcoin [BTC] exchange-traded fund [ETF] by the U.S. Securities and Exchange Commission (SEC). Grewal highlighted the recent legal defeat suffered by the SEC in blocking Grayscale from converting its GBTC bitcoin fund into an ETF. This setback has bolstered expectations that a bitcoin-related ETF will soon gain regulatory approval.
“I’m quite hopeful that these [ETF] applications will be granted, if only because they should be granted under the law,” Grewal explained in an interview with CNBC.
Grewal did not specify a timeline for this potential approval. However, he emphasized that the SEC has a favorable environment for granting Bitcoin ETFs. This is given the legal implications of its recent court setback.
Grewal noted that prominent financial services companies with strong proposals have expressed interest in offering Bitcoin-related products and services. This interest suggested that the SEC was likely to make progress on approving Bitcoin ETFs in the near future.
While the decision ultimately rests with the SEC, the recent legal precedent set by the U.S. Court of Appeals indicates that the regulatory body cannot reject ETF applications arbitrarily. Coinbase anticipates that the SEC will fulfill its responsibilities in approving Bitcoin ETFs in accordance with the law, aligning with the court’s ruling.
Grewal expresses hope for Bitcoin ETF approval with positive indicators
A Bitcoin ETF holds significant potential for offering a convenient investment avenue to gain exposure to BTC without directly purchasing the cryptocurrency from an exchange. This could appeal to retail investors seeking to participate in the cryptocurrency market without physically owning the underlying digital asset.
As the largest crypto exchange in the United States, Coinbase stands to benefit from the potential approval of a Bitcoin ETF. It is a common stock held in portfolios designed to that could expose investors to the world of cryptocurrency.
Grewal remains optimistic about the future of Bitcoin ETFs. He believes that the SEC will impartially and legally process pending ETF applications. This is expected to pave the way for multiple ETFs to be launched.
Grewal acknowledges challenges but remains hopeful that accountability through criminal trials and regulatory actions will improve the industry’s reputation. He hopes this will encourage investor and consumer interest in the crypto sector.
Gensler’s comments on the ETFs are…
Meanwhile Gary Gensler, Chair of the SEC, confirmed the review of multiple Bitcoin spot ETF applications. He stated that applicants must go through a process akin to a public offering. However, he didn’t clarify whether the SEC would approve individual ETFs or wait to approve them as a group.
Gensler avoided commenting on the Grayscale case, which recently had its ETF rejection deemed “arbitrary and capricious.” Speculation arises that an ongoing behind-the-scenes struggle may be occurring. Some applicants have submitted amended filings for their spot Bitcoin ETFs, including Fidelity, ARK Invest, and Invesco Galaxy. The SEC has approved Bitcoin futures ETFs but not spot Bitcoin ETFs.