Industry insiders estimate that there is a 90% chance that the United States Securities and Exchange Commission (SEC) will approve a Bitcoin Exchange-Traded Fund (ETF), which is highly anticipated by the cryptocurrency community as they await a possible breakthrough.
This decision is believed to change the Bitcoin investing landscape, as the SEC faces a crucial deadline on January 10. Senior research analyst at Bloomberg Intelligence, Jake Seyffart, has been carefully monitoring the events surrounding the approval process for the Bitcoin ETF.
Seyffart’s bullish view is based on the expectation that the United States SEC would approve the Bitcoin ETF, opening the door for further institutional involvement and a spike in investment.
If the SEC grants permission, Seyffart expects a significant inflow of roughly $10 billion into Bitcoin ETFs in the first year alone.
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Seyffart Expresses Optimism in the Approval Process, Lists Advantages
Seyffart said his bullish prediction isn’t based on mere conjecture but also from his observations of close communication between asset managers and the SEC. Amara Khatri from Crypto Daily explained that the ETF structure, which has worked well for traditional assets like stocks and commodities, could open up new channels for capital inflows into the cryptocurrency market.
Seyffart expressed his optimism about the current ongoing relationship between the SEC and the rest of the applicants. Seyffart pointed out that the current legal hitches against Grayscale experienced by SEC sometime in August as regards the enlisting of Grayscale Bitcoin Trust (GBTC) conversation is considered an advantage in the whole approval process.
Outcome of January 10 Deadline Explained: Wider BTC Adoption Expected
The cryptocurrency community is holding its breath, waiting for the SEC’s verdict, with the deadline of January 10 closing up. Should the regulatory body approve, it might be a turning point in developing the cryptocurrency sector, opening up Bitcoin to a wider group of investors.
Khatri added that whether Seyffart prediction of 90% approval chances is visible, it’s important to recognize that regulatory judgments are unpredictable. Khatri added that regarding innovative financial instruments, the SEC has traditionally gone on the side of caution, but unanticipated difficulties could still affect the result.
SEC’s New Position To Provide New Investment Opportunities, Encourage Performance
Seyffart said that from all indications, the SEC is out of ideas on finding reasons to prolong the BTC ETF approval. He explained that when the SEC turns down the applications, they should be able to provide new opportunities or compel applicants to withdraw their applications.
He also added that an unannounced denial is very likely possible in this case. The proposed SEC’s decision is believed to hold the possibility of offering a more organized, controlled, and available channel for investors to gain more interest in BTC.
In one of its meetings with the applicants, says, the SEC says that the reason behind such a move is to encourage a wider mainstream cryptocurrency performance. Seyffart also emphasized that some institutional cryptocurrency investors who are known for their careful approach may consider adopting BTC carefully.
They would carefully investigate before introducing new assets into their existing portfolio. However, Seyffart, on the other hand, has suggested a general approval for every applicant except Grayscale – he cited the reason as the special nature of getting more time for its conversation.