Analysts at Cantor Fitzgerald express increasing optimism in approving a spot Bitcoin exchange-traded fund (ETF) by the SEC. Their confidence stems from the robust market surveillance procedures proposed by asset managers. Unlike previous instances, the SEC shows receptiveness, primarily due to enhanced measures to prevent market manipulation on off-shore spot platforms.
The Ripple Effect on Bitcoin’s Value
The anticipated green light from the SEC has the potential to act as a significant short-term catalyst for Bitcoin’s price, propelling it toward greater heights. In recent weeks, Bitcoin witnessed a 25% surge, touching the $35,000 mark, the highest in almost 18 months. The approval of a spot Bitcoin ETF is a monumental moment, solidifying BTC’s legitimacy and easing the adoption process for long-term investors.
Josh Siegler and Will Carlson from Cantor Fitzgerald highlight the importance of “a comprehensive surveillance-sharing agreement with a regulated market of significant size.” This step is crucial for gaining regulatory approval. The recent application by BlackRock, including a surveillance-sharing agreement with Coinbase, sets a positive precedent.
Moreover, the victory of Grayscale Investments LLC in court against the SEC further boosts the optimism. The court’s decision underscores the SEC’s inconsistent stance, questioning why it approved Bitcoin futures ETFs but rejected Grayscale’s spot offering.
The analysts at Cantor Fitzgerald believe that the SEC’s approval of a spot Bitcoin ETF would act as a catalyst for BTC’s price in the short term and play a pivotal role in its long-term adoption and legitimization. The developments in recent weeks serve as a testament to the changing landscape, promising a brighter future for Bitcoin and its investors.