Former SEC Chair Expects U.S. Spot Bitcoin ETF Approval Admid Community Excitement

Key Points:

• Former SEC Chair Jay Clayton expects U.S. spot Bitcoin ETF approval despite delays.
• Court ruling favors Grayscale’s GBTC conversion to a spot ETF, boosting approval chances to 75%.
• Major financial firms like BlackRock and Fidelity show increasing interest in offering Bitcoin products to retail investors.

Former U.S. Securities and Exchange Commission (SEC) Chair Jay Clayton has expressed confidence in the inevitable approval of the inaugural spot Bitcoin Exchange-Traded Fund (ETF) within the United States. Clayton’s optimism follows the SEC’s recent decision delays regarding several spot Bitcoin ETF applications.

In a recent interview with CNBC’s Squawk Box, Clayton noted that, despite the SEC’s delays, progress toward approval was expected. The commission has an additional 45 days to approve, deny, or further delay ETF applications from seven major firms.

Clayton anticipates ongoing developments in this regard and believes that the arrival of a spot Bitcoin ETF is virtually certain.

This positive outlook is buoyed by a recent court decision allowing Grayscale to convert its GBTC Bitcoin Trust into a spot ETF, potentially paving the way for the first-ever spot Bitcoin ETF.

However, it’s worth noting that the cryptocurrency market has not yet responded with a significant bullish trend to this development.

Clayton emphasized the clear interest from retail investors and the desire of trusted providers to bring this product to the retail market.

He stated that Bitcoin is not a security and that leading financial institutions like BlackRock, Fidelity, and Ark Invest have built trust in cryptocurrency asset trading, dispelling concerns about manipulative practices.

The regulatory landscape surrounding cryptocurrencies presents challenges, particularly in distinguishing between securities and non-securities.

However, Clayton believes that offering Bitcoin products to the retail public, supported by trusted financial providers with fiduciary duties, will enhance cryptocurrency adoption.

The recent court ruling in favor of Grayscale on August 29, 2023, has significantly increased the likelihood of spot Bitcoin ETF approval to approximately 75%, according to ETF expert Eric Balchunas.

The crypto industry is closely watching the developments surrounding spot Bitcoin ETF applications, with traditional financial giants joining digital asset entities in seeking to bring this product to market.

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