In a recent interview with CNBC, Coibase’s Chief Legal Officer (CLO), Paul Grewal, shared his optimism about the impending approval of new spot Bitcoin Exchange-Traded Fund (FTF) application by the U.S Securities and Exchange Commission (SEC).
While Grawel didn’t specify when he expects the approval to come, his outlook underlines the belief that these applications align with existing legal frameworks.
Grewal expressed his confidence, saying, “I’m quite hopeful that these [ETF] applications will be granted, if only because they should be granted under the law.”
This sentiment reflects the views of two prominent Bloomberg EFT analysts, Eric Balchunas and James Seyffart, who raised the probability of a spot bitcoin ETF getting approved to 90%.
The analysts had previously put the chances at 75%, but have grown more confident in light of recent developments.
One key factor boosting expectations is the SEC’s decision not to appeal a court ruling in its lawsuit against Grayscale. The judge found the regulator lacked grounds for rejecting Grayscale’s bid to convert its Bitcoin Trust into a physically-backed ETF.
By declining to contest the ruling, It paves potential paths for Grayscale to proceed with its plan for Bitcoin-related ETF.
Several industries including BlackRock, Fidelity, and Invesco, are vying for SEC’s approval to list Bitcoin ETF.
Grewal believes the stature of the companies seeking l will also weigh in their favour, noting “I think that the firms that have stepped forward with robust proposals for these products and services are among some of the biggest blue chips in financial services.”
The SEC has rejected over a dozen bitcoin ETF applications so far, citing concerns around price manipulation and insufficient regulation. But with bitcoin trading more like stocks nowadays, and the crypto space gaining maturity, regulators may be running out of reasons to deny qualified applicants.
An approval would represent a major win for professional investors seeking access and exposure to bitcoin through conventional ETF products. With trillions in assets benchmarked to ETFs, it could also provide a significant boost to bitcoin adoption and price appreciation.