Former Securities and Exchange Commission (SEC) chairman Jay Clayton has expressed his belief that the approval of a spot Bitcoin Exchange-Traded Fund (ETF) is “inevitable” despite delays on seven applications.
Clayton made the comments in a recent interview with CNBC, where he discussed the growing demand for a spot Bitcoin ETF among both retail and institutional investors. “It is clear that Bitcoin is not a security,” he said. “The SEC has approved Bitcoin futures ETFs, and I see no reason why a spot Bitcoin ETF would be any different.”
The SEC has so far rejected seven applications for spot Bitcoin ETFs, citing concerns about market manipulation and the lack of a regulated Bitcoin market. However, Clayton argued that these concerns are no longer valid, given the growing size and liquidity of the Bitcoin market.
“The Bitcoin market has matured significantly since the SEC’s last decision on a spot Bitcoin ETF,” he said. “There are now large institutions with surveillance mechanisms who are coming in and saying no that is not the case. We can rely on the efficacy of the cash market to a sufficient extent where we believe this is an appropriate product.”
Clayton’s comments come at a time when there is growing momentum for the approval of a spot Bitcoin ETF. In June, a federal court ruled that the SEC’s decision to reject Grayscale’s request to convert its Bitcoin trust (GBTC) into an ETF was “arbitrary and capricious.” This ruling could make it more difficult for the SEC to continue to deny spot Bitcoin ETF applications.
If the SEC does eventually approve a spot Bitcoin ETF, it would be a major milestone for the cryptocurrency industry. It would make it easier for investors to access Bitcoin, and it could help to legitimize the cryptocurrency in the eyes of regulators and institutional investors.
However, it is important to note that there is no guarantee that the SEC will approve a spot Bitcoin ETF. The agency has been cautious about approving cryptocurrency products, and it is possible that it will continue to deny applications for spot Bitcoin ETFs.
Only time will tell whether Clayton’s prediction of an inevitable approval for a spot Bitcoin ETF will come true. However, his comments suggest that the SEC is at least considering the possibility, and that could be a positive sign for the cryptocurrency industry.
In addition to the SEC’s decision on spot Bitcoin ETFs, there are a number of other factors that could affect the future of the cryptocurrency market. These include the development of new regulations, the growth of institutional investment, and the adoption of Bitcoin by businesses and consumers.
The cryptocurrency market is still in its early stages, and it is difficult to predict what the future holds. However, the growing interest in Bitcoin and other cryptocurrencies suggests that they are here to stay.
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