US SEC’s Spot Bitcoin ETF Approval Would Have a Global Impact, Market Awaits Regulator’s Decision

The crypto industry has been expecting a Bitcoin spot ETF for a full decade now, ever since the filings started in 2013. However, until now, the US securities regulator did not see fit to approve any of the proposals, always finding flaws in the way they were designed.

With BlackRock refiling its proposal, Bloomberg Intelligence analyst James Seyffart believes that the crypto sector is the closest it has ever been to getting a Bitcoin spot ETF approved.

Approval of Bitcoin ETF will reignite global interest in Bitcoin

If the Securities and Exchange Commission approves a Bitcoin ETF, many believe a massive regime shift will boost global enthusiasm for Bitcoin adoption.

While the US has been outperformed by many countries in terms of Bitcoin regulation and adoption, the country’s moves still make very strong waves around the world.

Bitcoin’s price saw a strong boost after the SEC acknowledged BlackRock’s Bitcoin spot ETF application, followed by five others.

The entire crypto sector is waiting to see what the regulator will decide. In fact, many are making predictions and calculating the odds of approval.

Bloomberg Intelligence analyst James Seyffart is among them, and he believes that the odds of having a Bitcoin ETF approved are a lot stronger following the resolution of the SEC’s legal case against Ripple.

The SEC filed a lawsuit against Ripple in late 2020, accusing it of selling unregistered securities in the form of the XRP token.

However, after two and a half years of hearings, evidence collecting, and more, the court finally decided that XRP was not a security.

Ripple only won a partial victory, but the token is confirmed as not-a-security was the most important development to many in the crypto sector.

This case will likely strongly impact the SEC’s future legal proceedings and could affect the decision regarding the ETFs.

Bloomberg analyst believes that there is a strong chance of getting a Bitcoin ETF approved

In a recent interview, Seyffart said that the SEC had acknowledged multiple Bitcoin ETF filings, but the BlackRock filing is the one that is making the most noise.

We are officially at 50-50 odds. The SEC had a list of things they needed to have happen before they approved a Bitcoin ETF, and issuers have knocked those things off the list. The SEC wanted a surveillance sharing agreement with a regulated market of significant size that has been in every single denial letter over the years.

BlackRock, Nasdaq, and Coinbase have filed together with a surveillance-sharing agreement amending the approach. The ETF will be a security, which will put it under the SEC’s jurisdiction, meaning that the regulator will have oversight of these markets, with no challengers trying to take it away.

Seyffart added that Judge Torres’ decision was a big win for Ripple, which was also what Galaxy Digital CEO Mike Novogratz said. Even so, Ripple can still face strong setbacks in other aspects, especially if SEC Chair Gary Gensler decides to take the case out for another round.

The SEC loss in the Ripple case SHOULD pressure Congress to fill the regulatory void. @GOPMajorityWhip @PatrickMcHenry @SenatorHagerty @SenGillibrand @SenatorBooker Let’s do this!!!!

— Mike Novogratz (@novogratz) July 13, 2023

This is why it is imperative for the US Congress to bring regulations and clarity to the crypto industry. That would remove the guessing from the industry, and everyone would clearly know what they can and can’t do, buy, sell, invest in, and more.

However, even under current conditions, Seyffart believes that Bitcoin spot ETF has a strong chance of being approved.

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