Coinbase Bullish: Bitcoin ETF Approval Expected After SEC’s Defeat
21 Oktober 2023 - 3:00AM
NEWSBTC
In a recent CNBC report, Coinbase, the largest cryptocurrency
exchange in the United States, expressed confidence in the approval
of a US-based Bitcoin (BTC) exchange-traded fund (ETF) by the
Securities and Exchange Commission (SEC). Paul Grewal,
Coinbase’s Chief Legal Officer, highlighted that the SEC’s recent
court setback in the case of Grayscale’s proposed Bitcoin ETF has
paved the way for a potential approval in the coming months.
Coinbase Eyes Bitcoin ETF Approval Grewal emphasized that
Coinbase is hopeful about the approval of ETF applications due to
their compliance with existing laws governing financial services.
Grewal noted that prominent financial institutions have submitted
robust proposals, indicating progress in the regulatory landscape.
The recent court ruling against the SEC stated that the regulator
lacked a valid basis to deny Grayscale’s request to convert its
GBTC Bitcoin fund into an ETF. Related Reading: xDay 2023:
Elon Musk’s X Competitor? xPortal Unveils Rival Features The SEC
chose not to appeal the ruling within the specified deadline,
further increasing the likelihood of a BTC-related ETF gaining
approval shortly. However, Grewal acknowledged that the ultimate
decision rests with the SEC, and he refrained from providing a
specific timeline for the approval process. Nevertheless,
Grewal expressed confidence in the SEC’s obligation to fulfill its
responsibilities, particularly in light of the court’s decision and
the requirement to apply the law impartially. The introduction of a
Bitcoin ETF would offer investors an alternative means to gain
exposure to BTC without directly purchasing the cryptocurrency from
an exchange. This could be particularly attractive to retail
investors seeking Bitcoin exposure without the complexities of
owning the underlying asset. Per the report, Coinbase, being the
largest crypto exchange in the United States, stands to benefit
from the potential approval of a BTC ETF. The company’s common
stock is held in portfolios designed to provide investors with
crypto exposure. Legal Troubles Mount For Grayscale’s Parent
Company While the recent court ruling has bolstered prospects for a
BTC ETF, it is important to note that Grayscale’s bid to convert
GBTC into an ETF is not without its challenges. Digital
Currency Group (DCG), Grayscale’s parent company, along with crypto
exchange Gemini and DCG subsidiary Genesis, face a lawsuit from the
New York Attorney General, accusing them of defrauding investors of
over $1 billion. Related Reading: Bulls Thrust Solana To $25 – What
Traders Should Expect Next Despite the ongoing legal issues, Grewal
remained positive about the approval of additional Bitcoin ETFs in
the future as the SEC adheres to the law and evaluates pending
applications neutrally. The report also touched upon the recent
performance of BTC, which has experienced a resurgence in 2023.
With a 72% year-to-date increase, Bitcoin has rebounded from
significant declines in 2022. Factors such as anticipation
surrounding the upcoming BTC halving event and investor reactions
to the Federal Reserve’s potential interest rate policy changes
have contributed to increased demand for the digital currency.
Ultimately while trading volumes have declined recently, attributed
partly to retail investors’ reduced engagement in response to low
volatility and industry players’ challenges, Grewal expressed
optimism that various developments, including criminal trials and
rigorous regulatory actions, will restore investor and consumer
interest in the crypto market. As the landscape for Bitcoin ETFs
evolves, market participants will closely monitor the SEC’s stance
and any potential regulatory developments that shape the future of
cryptocurrency investment products. Featured image from
Shutterstock, chart from TradingView.com
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