Coinbase CLO Trusts SEC's Commitment To Approve Bitcoin ETF

Paul Grewal, the Chief Legal Officer (CLO) of Coinbase Global Inc., expresses optimism and anticipation regarding the approval of a Bitcoin (BTC) Exchange Traded Fund (ETF) by the United States Securities and Exchange Commission (SEC). Grewal is confident that the regulator will fulfill its obligations and grant approval for this highly coveted investment product.

During an interview with CNBC, Coinbase’s Chief Legal Officer (CLO) emphasized their strong belief that U.S. regulatory authorities will approve the inclusion of the new spot BTC ETF offering. Notably, Grewal refrained from providing a specific timeline or sequence for when this approval is expected to be granted.

Grewal strongly believed that these ETF applications’ approval is likely primarily because they align with existing legal frameworks.

His viewpoint aligns with the assessment of two Bloomberg ETF analysts. According to their recent evaluation, the likelihood of SEC approval for a spot Bitcoin ETF has increased. Initially estimating the approval odds at 75%, Eric Balchunas and James Seyffart have revised them upward to 90%. This revision reflects the growing confidence these analysts have in the regulatory decision.

Coinbase Chief Legal Officer Optimistic About Bitcoin ETF Prospects

In recent developments, the SEC’s actions regarding its legal dispute with Grayscale suggest a potential rise of a Bitcoin-related ETF in the near future. Following a judge’s ruling that the SEC lacked sufficient grounds to reject Grayscale’s request for transforming their Bitcoin Trust into a physically-backed ETF, speculation arose that the regulatory body might pursue an appeal similar to its actions in the Ripple Labs and XRP case.

However, in a surprising twist of events, the regulatory authority made an unexpected decision not to pursue an appeal against the court’s ruling. This development significantly increases the likelihood of Grayscale successfully transforming its GBTC into an ETF.

Several industry leaders, including BlackRock, Fidelity, and Invesco, actively seek approval to list a Bitcoin ETF product. Although they have achieved some minor successes thus far, the Chief Legal Officer of Coinbase believes that the standing and reputation of these applicants could play a crucial role in securing approval this time.

Grewal also said, “I believe prominent companies in the financial services industry are actively presenting comprehensive proposals for these products and services.”

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.