Bitcoin ETFs: The SEC faces an imminent historic turn

Bitcoin ETF market


IMPORTANT POINTS:

  • Simultaneous ETF Approval: Former BlackRock CEO Martin Bednall suggests the SEC could approve all Bitcoin ETF applications at the same time.
  • SEC Change in Stance: Steven Schoenfeld highlights the shift in the SEC’s approach from denials to requests for comment, indicating a possible positive turn.
  • Relevant Legal Cases: The SEC’s defeat in the litigation against Grayscale could accelerate the conversion of the Grayscale Bitcoin Trust into an ETF, pressuring the SEC to act more quickly.

Visions of Former BlackRock and Barclays Executives

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The possible approval of Bitcoin exchange-traded funds (ETFs) in the United States has been a hot topic in the financial sector. During a panel at the CCData Digital Asset Summit in London, two influential voices in the industry shared their perspectives on the matter.

Martin Bednall, who previously held an executive position at investment giant BlackRock and now leads Jacobi Asset Management, shed light on the strategy the US Securities and Exchange Commission (SEC) could adopt. According to Bednall, the SEC could lean toward simultaneous approval of all Bitcoin ETF applications. He expressed: “I don’t think they want to give anyone a first-mover advantage, especially with BlackRock in the equation. Given the size of BlackRock, they will surely push their offering hard to ensure they have the benchmark ETF.”

A Change in the Horizon

Steven Schoenfeld, former director at Barclays Global Investors (later acquired by BlackRock) and current CEO of MarketVector Indexes, shared a more immediate view on the topic. He mentioned that, although two weeks ago he would have estimated an approval within nine to twelve months, he now believes it could happen in just three to six months. Schoenfeld substantiated his optimism by pointing to recent signs: “The SEC, rather than rejecting all proposals outright, has asked for comments, which shows a positive shift in the dialogue.”

Additionally, Schoenfeld also referenced the recent legal case with Grayscale, where the SEC suffered a setback. This could mean that Grayscale Bitcoin Trust (GBTC) is allowed to become an ETF. Schoenfeld added: “I don’t think the SEC wants this to happen while ETF applications are still on hold.”

With these comments from experts in the field, the outlook looks promising for the approval of Bitcoin ETFs in the United States in the near future.