Jay Clayton, former Chair of the U.S. Securities and Exchange Commission (SEC), has conveyed a high degree of optimism regarding the potential approval of the inaugural spot Bitcoin Exchange-Traded Fund (ETF) within the United States. Clayton’s outlook is rooted in several key factors shaping the market landscape.
During a recent appearance on CNBC’s Squawk Box on September 1, Clayton’s statement coincided with an optimistic phase in the cryptocurrency market. This optimistic sentiment stems from a recent court decision that granted approval for Grayscale to convert its GBTC Bitcoin Trust into a spot ETF, potentially paving the way for the first-ever spot Bitcoin ETF. However, it’s worth noting that the Bitcoin price has not yet exhibited a bullish trend in response to this significant development.
The former SEC Chair expressed a strong belief that the approval of a spot ETF is virtually certain, given the prevailing circumstances. This confidence arises from the fact that major financial institutions such as BlackRock, Fidelity, and Ark Invest have developed a high level of trust in cash trading within the cryptocurrency asset space. Clayton emphasized that these companies have effectively dispelled concerns regarding manipulative practices in crypto trading. Furthermore, he noted:
“It is clear that Bitcoin is not a security. It is something that retail investors want access to and importantly some of our most trusted providers want to provide this product to the retail public. An approval is inevitable.”
The US Court of Appeals for the District of Columbia Circuit ruled in favor of Grayscale in its lawsuit against the federal regulatory agency on August 29, 2023. This ruling has paved the way for the conversion of the company’s Bitcoin Trust (GBTC) into a spot Bitcoin ETF, marking a major turning point in the crypto market landscape.
In turn, the likelihood of approval has significantly increased to 75%, as indicated by ETF expert Eric Balchunas in his analysis for Bloomberg.
As things stand, Bitcoin is trading at $25,853.22. It has experienced a decline of 4.68% over the course of the day and a modest decrease of 0.72% over the past week.