In the CoinDesk Consensus 2022, Grayscale and Bitwise said that a spot Bitcoin ETF would be approved soon. Till now, the SEC has been dodging spot ETF applications from multiple firms. They have only approved future ETF applications for Bitcoin, citing security concerns. However, that doesn’t stop Grayscale Bitcoin Trust and Bitwise from being optimistic about the approval of a sport BTC ETF.
Grayscale’s recent proposition and Bitwise’s comment
The GBTC is one of the largest Bitcoin Trusts globally. And the firm has recently proposed converting the trust to a spot ETF. They haven’t been approved by the SEC yet, and the deadline for the decision is on July 6th, 2022, which is a few weeks from here. So, we have to wait and see if they get approved and become the first spot BTC ETF. The global head of ETFs, David LaValle at Grayscale, believes that it is not a matter of if anymore but when.
Bitwise’s Chief Investment Officer, Matt Hougan, also commented on the situation, saying that the perception currently is SEC says no to everything. But we have to note that they have approved multiple Bitcoin futures ETFs based on the 1933 Investment act. This is the same act under which the spot ETFs are being filed. So, sooner or later, it will lead to a spot ETF approval. Matt believes that the SEC is also progressing just a little slower than the market.
The future of spot Bitcoin ETFs
Matt believes that Bitcoin ETFs will become the most significant way of holding Bitcoin for investors. But it will take time to get there. The idea that once a spot ETF is approved, it will have billions under its AUM is not feasible. Even the fastest-growing ETF, GLD, took 5 years to hit $30 billion in assets under management. So, it will not be really feasible to expect anything more from a spot ETF of BTC.
However, the point here is that a spot Bitcoin ETF will sooner or later grow huge, and it will take the price of BTC to new heights. It will also bring a lot more investors to the industry because the perception that it’s approved by the SEC will make it positive.
What are your thoughts as Grayscale and Bitwise think that a spot Bitcoin ETF will be approved soon? And will you be interested in buying an ETF or directly from exchanges? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.