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- Former BlackRock managing director Steven Schoenfield said during a London conference that the United States SEC will approve all Bitcoin spot ETF at once in three to six months.
- The US SEC has received more than 10 applications for a spot in Bitcoin ETF including from Grayscale, Blackrock, Franklin Templeton, Fidelity, Invesco, and Wisdomtree among many others.
The clock is ticking for the United States Securities and Exchanges Commission (SEC) to end its delay for a spot Bitcoin ETF and experts believe it could coincide with the fourth halving during the first half of 2024.
According to a former BlackRock managing director, Steve Schoenfield – who now is the Chief Executive Officer (CEO) of MarketVector Indexes – the US SEC has between three to six months to act within the law and approve the list of spot Bitcoin ETFs presented by fund managers with cumulative assets under the management of over $17 trillion.
According to Schoenfield, during a London conference, the US SEC is likely to approve all the spot Bitcoin ETFs at the same time to avoid giving the firm an added advantage. Moreover, the Bitcoin accumulation game is tight to all investors as it has a limited supply of 21 million, considering accounts holding between 1-10k units hold about 15.2 million coins and are not likely to sell anytime soon.
“The SEC will probably approve [all spot bitcoin ETF applications]at the same time; I don’t think they want to give anybody first mover advantage. Instead of completely rejecting the whole list, they’ve asked for comments, which is a marginal but significant improvement in the dialogue,” Schoenfield noted.
Crypto Investors Awaits SEC’s Signal on Bitcoin Spot ETF
With the US SEC holding the key to a major adoption phase, experts believe the entire crypto industry is waiting for a signal and FOMO investors will proliferate the industry at an unprecedented rate. Moreover, the entire crypto market valuation has steadily held around $1 trillion despite the collapse of FTX, its sister investment firm, 3AC hedge fund, and Celsius, among others.
Meanwhile, institutional investors have begun diversifying into other top-rated digital assets like Ethereum since Bitcoin has higher diminishing returns compared to the altcoin market.
“The entire crypto market appears to be holding its breath while it waits for the U.S. SEC to begin approving Bitcoin spot ETFs. But in the meantime, it would appear asset managers are already beginning to adapt their offerings depending on what happens next in the market. There is evidently an increasing move from smaller providers such as Valkyrie and VanEck to diversify out of Bitcoin and into Ethereum. This will give them an added selling point once the big institutional players are unleashed onto the bitcoin ETF market,” Swarm Markets co-founder Timo Lehes noted.
Market Outlook
When the US SEC approves the first Bitcoin ETF, experts believe all digital assets will record heightened volatility. Led by Ethereum and XRP, which have attained more regulatory clarity, experts believe a new ATH will be a conservative estimate. Meanwhile, crypto investors will closely monitor the former FTX boss trial case that is proceeding in the next six weeks.
