Bitcoin Spot ETF Approval In Peril? Former Coinbase Director Pours Chilly Water On Optimism

An analyst has advised that the approval of a Bitcoin (BTC) Spot exchange-traded fund (ETF) is unlikely to occur this 12 months, dampening the optimism that surged within the crypto sector following Grayscale’s current authorized victory towards the US Securities and Change Fee (SEC). 

The SEC has prolonged its choice deadline on seven ETF filings, inflicting a decline in investor anticipation and pushing the BTC value under $25,800.

Former Coinbase Director Predicts Unlikelihood Of Bitcoin ETF Approval In 2023

Final week, Grayscale scored a big authorized win when Choose Neomi Rao dominated that the SEC was fallacious in rejecting Grayscale’s utility to transform its Grayscale Bitcoin Belief (GBTC) right into a spot ETF. 

This information initially buoyed market sentiment, inflicting Bitcoin’s value to surpass $28,100. Nonetheless, the SEC’s subsequent extension of choice deadlines on a number of ETF filings has resulted in a 1.1% decline within the BTC’s value, presently buying and selling at $25,700.

In a current interview with Yahoo Finance, Lory Kehoe, former US-based crypto change Coinbase director and head of Blockchain Eire, expressed his perception {that a} Bitcoin Spot ETF approval is extra prone to happen in 2024. 

Kehoe highlighted the significance of in depth evaluation and due diligence all through the rest of this 12 months, indicating that the SEC takes media curiosity under consideration however finally makes unbiased choices. He additional added: 

The opportunity of a spot Bitcoin ETF submitting getting SEC approval is an space that’s getting an elevated degree of media curiosity. I feel the SEC takes all that on board however isn’t afraid to stay to its weapons and make its personal choices.

Nonetheless, Kehoe additionally expressed his willingness to be confirmed fallacious and see an ETF approval in 2023. In keeping with Kehoe, one of many crucial issues for the SEC is the problem of market manipulation.

The regulator’s main mandate revolves round investor safety and monetary oversight, and it intently scrutinizes whether or not the market meets its standards for an everyday functioning market. 

If the SEC perceives the Bitcoin market as assembly these standards, a Bitcoin Spot ETF may achieve approval, marking a momentous milestone within the historical past of cryptocurrencies and bitcoin.

Kehoe emphasised that the approval of a BTC ETF would have far-reaching implications for Grayscale and its traders and the broader crypto and asset administration communities. 

It could signify a big second within the historical past of cryptocurrencies, offering elevated accessibility and legitimacy to the digital asset market. Nonetheless, the SEC stays cautious in its analysis.

Whereas Grayscale’s current authorized victory fueled hopes for a Bitcoin Spot ETF approval, the previous Coinbase director means that such an end result is unlikely in 2023. 

The SEC’s choice to increase choice deadlines on a number of ETF filings has dampened investor anticipation and led to a decline within the BTC’s value. Market manipulation considerations stay a big issue for the SEC, and the regulator’s scrutiny of the BTC market’s adherence to its standards will finally decide the destiny of an ETF. 

If authorised, it might signify a considerable milestone for cryptocurrencies and bolster the market’s credibility and accessibility.

Featured picture from iStock, chart from TradingView.com