Bitcoin ETF Race Heats Up, But Grayscale May Lag Behind

Amid increasing speculation regarding the potential approval of a Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission, Bloomberg analyst Eric Balchunas has proposed that Grayscale’s ETF could be compelled to delay its launch, trailing behind other contenders.

Bloomberg analyst Eric Balchunas shared his view on X (formerly Twitter) that Grayscale’s Bitcoin trust, which has over $26 billion in assets under management, may face some challenges in converting to an ETF. He said the SEC worries about “fair competition at launch” and considers GBTC an unfair advantage due to its size and volume.

He indicated his confidence that Grayscale will ultimately achieve its goal but suggested that it might experience a delay compared to other upcoming spot Bitcoin ETFs. This viewpoint contrasts with analyst James Seyffart, who anticipates that GBTC will launch concurrently with its counterparts.

Many experts anticipate the SEC will greenlight the first Bitcoin ETF in the next few weeks, following the example of Canada and other countries that have already done so.

Bitcoin ETF Could Boost Crypto Market To New Highs

A Bitcoin ETF approval is a significant catalyst for the crypto market, as it would attract more institutional and retail investors to the space. Some analysts predict that a Bitcoin ETF and the upcoming halving event could propel Bitcoin’s price to $100K by the end of 2024.

The crypto market has already been bullish, with Bitcoin reaching a new yearly high of $44K recently. However, the price has since corrected and is currently trading at $42,884, up 4.60% in the last 24 hours, according to CoinMarketCap. The total crypto market cap also increased by 3.73% in the same period, reaching $1.61 trillion.

Related Reading| ARK Exodus: Cathie Wood Unloads 800K Grayscale Bitcoin Trust Shares

The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.

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