Approving a Spot BTC ETF Would be ‘Hard to Resist,’ Former SEC Chair Says

Jay Clayton – former Chairman of the US Securities and Exchange Commission (SEC) – believes the agency should approve a spot Bitcoin ETF in America if the interested companies prove the safety of the product. However, he could not predict when such a green light would come.

Multiple behemoths, including BlackRock, Invesco, and Fidelity Digital Assets, have recently filed to launch such a fund. The SEC has previously given its nod to a futures BTC ETF but has been reluctant to approve a spot one. 

Bitcoin Surprised Clayton

The American lawyer who served as the SEC Chairman between May 2017 and December 2020 revealed in a recent interview that he was initially “very skeptical” about bitcoin. 

“Let’s go back to 2015-2016, this is an offshore, retail, nothing close to what I would say the core of our financial markets. At that time, if you look at the trading of bitcoin, the emergence of bitcoin, it looked like stocks, but it was nothing like it.”

Jay Clayton
Jay Clayton, Source: Politico

Several years later, though, prominent finance firms have backed the asset with their reputation. He described the recent spree of filings for spot BTC ETFs as an “incredible development” and not the one he expected. 

Clayton claimed that the SEC approved several futures Bitcoin ETFs in the past as it saw that the products were sufficiently safe for investors, something that it has not observed in a spot product yet. Institutions, though, believe those distinctions have gone away.

“If you can demonstrate that the spot market has similar efficacy to the futures market, it would be hard to resist approving a Bitcoin ETF,” the American concluded. 

The Market’s Revival After the Filings

The cryptocurrency market has been in rather good shape ever since the world’s largest asset manager displayed intentions to introduce a spot BTC ETF in the USA. The organization has a remarkable record with the SEC, having only 1 out of 576 ETFs rejected over the years. In addition, it refiled an amended version, tapping Coinbase as a surveillance partner to comply with the Commission’s requirements. 

Numerous finance giants, such as Fidelity Digital Assets, WisdomTree, Invesco, Valkyrie, and Ark Invest, followed BlackRock’s example.

The USD valuation of most crypto assets, including bitcoin, headed north in the following weeks. The leading digital asset has surged by over 20% since June 15 (the day of BlackRock’s filing).

The development has also infused high optimism among investors. One example is the Bitcoin Fear and Greed Index, which has stayed in the “Greed” zone for the past three weeks. 

Subsequently, BTC sharks, whales, and long-term holders have been on an accumulation spree. The latest data revealed that LTHs hold almost 14.5 million BTC, or about 75% of the circulating supply.


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