- Bernstein, the $650 billion asset supervisor, believes there’s a robust likelihood of getting a Bitcoin ETF accredited.
- The SEC’s argument for rejecting spot ETFs by asserting futures contracts is unlikely to persuade a court docket in Grayscale vs. SEC.
- Analysts at Bernstein famous that the regulator is prone to approve an ETF launched by the regulated Wall Avenue large, quite than coping with over-the-counter merchandise equivalent to GBTC.
July 2, Gemini founder Cameron Winklevoss in a tweet that it has been 10 years because the Winklevoss twins filed the primary Bitcoin ETF. Over the course of a decade, the SEC has rejected quite a few proposals, a state of affairs that continues even because the outlook for the cryptocurrency market turns more and more optimistic.
The case is much more pronounced after a collection of applications involving main Wall Avenue giants equivalent to BlackRock, Constancy and Invesco.
CoinDesk reported in the present day that brokerage agency Bernstein is amongst those that have sounded the newest bullish tone relating to the approval of a Bitcoin ETF.
The SEC’s approval of Bitcoin futures ETFs and leveraged futures ETFs, which it allowed final week, leaves the regulator with little leeway to proceed stopping spot ETFs, in keeping with agency specialists who shared their insights in a analysis report. .
The Case for Home ETFs
The SEC’s rivalry that futures costs are decided by regulated exchanges just like the CME, quite than spot costs coming from cryptocurrency exchanges like Coinbase, stands. However when main asset managers name for market surveillance agreements to remove potential manipulation, the SEC is basically on the spot.
Grayscale’s case towards the SEC relating to the regulator’s opposition to a proposal to show the Grayscale Bitcoin Belief (GBTC) right into a home Bitcoin ETF is one more reason why approval is very doubtless.
(Learn extra: Grayscale Convert Your GBTC to Bitcoin ETF)
Bernstein analysts say the court docket is unlikely to βensuring that the futures worth just isn’t derived from the spot worth. Additionally they consider that permitting futures ETFs and never endorsing currents could also be “it is a onerous capsule for the court docket to swallows.”
Their report summarizes the outlook as follows:
“The SEC would quite introduce a regulated bitcoin ETF managed by extra main Wall Avenue gamers and monitored by current regulated exchanges than should cope with a grey OTC product that fills an institutional hole..
Market specialists see the SEC’s newest response to current filings as a great first step as Cboe BZX provides spot ETFs to a number of firms that checklist Coinbase as an trade with which they’ve a custody sharing settlement.
Nasdaq additionally added to BlackRock’s ETF providing by itemizing Coinbase as a cryptocurrency trade with SSA.
JUST IN: BlackRock refiled spot bitcoin ETF, refiling dated 6/29, Nasdaq simply introduced. They only added Coinbase like everybody else. pic.twitter.com/UGq46DdLgu
β Eric Balchun (@EricBalchun) in 2023 July 3
