Cantor Fitzgerald, a major player in financial services, has indicated growing confidence in the likelihood of the Securities and Exchange Commission (SEC) approving applications for Bitcoin Spot ETFs, according to a Bloomberg report. Unlike past rejections, analysts at the firm, Josh Siegler and Will Carlson, have stated that the SEC seems more inclined to approve the newly filed applications. One key point they emphasized is BlackRock Inc.’s application, which has incorporated a surveillance-sharing agreement to mitigate market manipulation. Additionally, Grayscale Investments LLC recently won a court battle against the SEC, overturning a previous rejection of its proposal to convert its trust into an ETF.
Newly-proposed surveillance measures could sway SEC decision
One critical component that appears to be swaying the SEC’s stance is the inclusion of “comprehensive surveillance-sharing agreements” within applications. Siegler and Carlson from Cantor Fitzgerald stated that such an agreement with a regulated market of significant size would likely meet the SEC’s criteria for approval. Following in the footsteps of BlackRock, other applicants have also embedded such surveillance provisions within their proposals.
Moreover, the analysts have cited the recent judgment by a federal court in favor of Grayscale Investments. Judge Neomi Rao termed the SEC’s decision to reject Grayscale’s proposal as “arbitrary and capricious.” The court highlighted the SEC’s inconsistency, pointing out the unexplained rationale for approving Bitcoin futures ETFs while rejecting Grayscale’s spot offering. This, despite both types of products sharing similarities across several regulatory considerations.
The effect of these developments on Bitcoin’s valuation is already evident. According to Siegler and Carlson, the recent surge in Bitcoin prices, climbing to more than $35,000, the highest level in nearly 18 months, can be attributed in part to these regulatory shifts. They noted that a Bitcoin Spot ETF approval would serve as a significant short-term catalyst for Bitcoin’s price.
However, it’s not just about the immediate implications for the cryptocurrency market. The analysts argue that approval of a Spot Bitcoin ETF in the US would contribute substantially to Bitcoin’s long-term adoption and legitimacy. It would essentially simplify the investment process, eliminating the need for investors to find a Bitcoin custodian or invest in more complex futures products.
The post Cantor Fitzgerald expresses optimism over SEC’s future approval of Bitcoin Spot ETFs first appeared on Coinfea.
