Asset management firm BlackRock has announced its plans to purchase $10 million worth of Bitcoin, generating speculation that the Securities and Exchange Commission (SEC) may soon approve Bitcoin spot exchange-traded funds (ETFs).
During a private webinar with CryptoQuant, Bloomberg Analyst James Seyffart shared his prediction that the SEC will approve several Bitcoin spot ETF applications in the coming days. He believes that the recent court ruling against the regulatory agency has eliminated their ability to deny Bitcoin ETFs based on previous reasons.
“The SEC is either going to have to come up with a new reason. Because you’ve been denying these ETFs for all these reasons. Courts said those reasons don’t matter anymore, and now you’re coming out with new reasons,” Seyffart said. “I don’t think that’s an option for the SEC. The other option is to get them to withdraw, in which case, again, I don’t think that’s likely because the SEC is backed into a corner here. I think they have to approve.”
BlackRock has disclosed its plans for the $10 million Bitcoin purchase in an amendment filing for its proposed spot ETF. The funds for this purchase come from previous seed capital investments made in October. While this purchase does not guarantee the launch of an ETF, Seyffart believes that it demonstrates BlackRock’s confidence in the imminent SEC approval.
Rival firm Bitwise has also expressed its intention to seed its proposed Bitcoin ETF with up to $200 million. Seyffart suggests that the SEC, having rejected multiple Bitcoin ETF applications in the past, is now compelled to approve some of them.
Seyffart expects the official SEC approval to occur between January 8 and January 10. If approved, the introduction of Bitcoin ETFs would provide mainstream investors with convenient exposure to Bitcoin through brokerage accounts for the first time. The SEC’s previous concerns regarding Bitcoin market manipulation and lack of regulation have been cited as reasons for rejecting previous applications.
Currently, there are six companies with pending Bitcoin ETF applications awaiting SEC decisions. If these applications are approved, it could open the $850 billion Bitcoin market to millions of retail and institutional investors. As the financial community awaits the SEC’s verdict, the outcome of these decisions will undoubtedly have a significant impact on the future trajectory of cryptocurrency investment.
