I think approval is inevitable, despite the recent delay by the U.S. Securities and Exchange Commission (SEC) in deciding on applications for a Bitcoin Exchange-Traded Fund (ETF). Former SEC chair Jay Clayton expressed his belief that approval for the ETF is just a matter of time.
The SEC’s decision to postpone its ruling affected several applicants, including WisdomTree, Valkyrie, Invesco, Vaneck, and BlackRock Inc. However, Clayton remains confident that the approval of a Bitcoin ETF is inevitable. In an interview with CNBC’s “Squawk Box,” he stated, “Bitcoin is not a security. So, I think an approval is inevitable. The dichotomy between a futures product and a cash product can’t go on forever. That’s the path we are on.”
The delay in approving the Bitcoin ETF has led to a decline in the value of Bitcoin, which is down about 18% from its year-to-date high in mid-July. Despite this setback, Clayton sees the demand for a Bitcoin ETF as a clear indication that both retail and institutional investors are interested in gaining access to the digital asset.
The recent ruling in favor of Grayscale in its lawsuit against the SEC further highlights the desire for a Bitcoin ETF. According to Clayton, the SEC has been given time to reassess and potentially come up with other reasons for the delay. However, he does not see any significant obstacles preventing the approval of a Bitcoin ETF.
The potential approval of a Spot Bitcoin ETF is significant, as experts believe it could increase demand for the cryptocurrency and lead to substantial price appreciation.
In conclusion, although the SEC’s recent delay may create short-term uncertainty, many experts, including former SEC chair Jay Clayton, believe that approval for a Bitcoin ETF is inevitable. The growing demand from both retail and institutional investors suggests a strong interest in gaining exposure to the digital asset. In the long run, a Bitcoin ETF could have a positive impact on the price of Bitcoin and further legitimize the cryptocurrency in the eyes of traditional investors.