Former SEC chair Jay Clayton is confident about the imminent approval of a spot Bitcoin ETF, deeming it “inevitable.” In a recent CNBC interview, Clayton expressed that the SEC has reached a point where the decision is practically predetermined.
Over the past decade, the SEC rejected applications for spot Bitcoin ETFs one by one, stating reasons for market manipulation and fraud. Clayton acknowledges the dynamic changes, though directing to a notable enhancement in Bitcoin’s market conditions during the last five years.
Reflecting on the past, Clayton highlighted issues like wash sales and laddering that posed risks, making it unsuitable for public exposure. However, he emphasized that recent advancements in technology and infrastructure have significantly mitigated those risks, making the approval of a spot Bitcoin ETF more likely.
Clayton noted the agency’s progress by commending the SEC for its comfort with disclosures from major firms such as BlackRock and Fidelity. He specifically praised the development of secure custody solutions, enabling broader access to Bitcoin for traditional financial market participants.
Optimism Grows for Bitcoin ETF Approval
Beyond the crypto space, Clayton recognized the transformative potential of blockchain technology. He emphasized its ability to tokenize and trade real-world assets, foreseeing a substantial impact on the broader finance sector.
Recent developments support Clayton’s optimism, with a surge in amended filings from prospective Bitcoin ETF issuers on Jan. 8. These filings disclosed the fees these issuers aim to charge post-approval, signalling growing anticipation in the market.
Bloomberg ETF analysts James Seyffart and Eric Balchunas estimated a 90% chance of a spot Bitcoin ETF approval by Jan. 10. Seyffart indicated that the influx of amended filings suggests accelerating the regulatory process. He anticipates further amendments and comments from the SEC in the coming days but does not see them as a signal of potential delays.
Moreover, the prevailing sentiment, echoed by Clayton and industry analysts, suggests a positive trajectory for approving a spot Bitcoin ETF in the United States. The evolving market dynamics and regulatory advancements indicate a turning point in the SEC’s stance on cryptocurrency-related financial products.
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