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SEC To Approve Bitcoin ETF Soon, Says Former Chairman

Published 01/09/2023, 19:10
Updated 01/09/2023, 20:10
© Reuters SEC To Approve Bitcoin ETF Soon, Says Former Chairman
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Benzinga - Former SEC Chairman Jay Clayton believes the U.S. will eventually greenlight a spot Bitcoin ETF.

What Happened: In an interview with CNBC on Friday, Clayton stated, “Approval is inevitable.”

He highlighted the existing scenario where retail investors can trade a Bitcoin futures product but are restricted from one based on the Bitcoin cash market, commenting that such a situation “can’t go on forever.”

In light of these developments, the crypto community eagerly anticipates the upcoming Benzinga's Future of Digital Assets conference. The event promises to delve deeper into the implications of such regulatory decisions and their impact on the digital assets landscape.

Clayton acknowledged the SEC's initial reservations about the Bitcoin cash market, fearing its susceptibility to manipulation.

He noted a change in perception, saying, “There are now large institutions with surveillance mechanisms who are coming in and saying, no, that’s not the case.”

This comes on the heels of a federal court's directive for the SEC to re-evaluate Grayscale Investments' request to launch a Bitcoin spot ETF.

Also Read: September May Be Cruelest Month For Bitcoin, Ethereum, Analyst Says: What Coins Benefit?

The court criticized the SEC's decision to greenlight two bitcoin futures funds while rejecting the spot ETF application, terming it “arbitrary and capricious” and contrary to federal administrative law.

Why It Matters: Meanwhile, the SEC has deferred its decision on spot Bitcoin ETF applications from major firms, including BlackRock Inc (NYSE: BLK), Wisdomtree and VanEck, until October.

Documents unveiled Thursday revealed the SEC began reviewing these proposals last month.

These companies are vying to roll out the first spot Bitcoin ETF, which many argue would streamline the process for retail investors, negating the need for personal crypto wallets or direct Bitcoin acquisitions.

Read Next: HashKey Capital To Inject Millions Into Altcoins — Shiba Inu, Dogecoin, And Pepe Coin Set To Soar?

Discover Fintech innovations and delve into the Future of Digital Assets at Benzinga's premier events; grab your tickets today to be part of the revolution!

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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