Fred Thiel, CEO of Marathon Digital, expresses optimism regarding the potential approval of a spot Bitcoin (BTC) Exchange Traded Fund (ETF) in the United States. The greenlight from the Securities and Exchange Commission (SEC) still hangs in the balance due to concerns about potential market manipulation. However, several recent progression has tipped the scales towards a possible approval, according to crypto enthusiasts like Thiel.
The possible future acceptance of a spot Bitcoin ETF may hinge on the growing institutional interest shown in recent months. Thiel maintains cautious optimism, propelled by endeavors of big players like Larry Fink and BlackRock venturing into this unprecedented domain. This substantial investment interest could signify a higher likelihood of regulatory acceptance.
The CEO further suggests that chances for Bitcoin could be bolstered if the SEC approves a spot ETF for Ethereum before it. Applications for the latter, expecting approval around October, are already in play. The rationale behind this speculation is uncritical: if Ethereum receives the nod, the path to Bitcoin approval should be clearer, given Bitcoin hasn’t been flagged by the SEC as a security yet.
Add to this mix is the resurgence of institutional investors in the market, and a nod from the SEC seems more likely than not. With several spot BTC ETF applications in the pipeline, including those from powerhouses like BlackRock and Fidelity Digital, the hope of the first approval being on the cusp is growing among digital asset enthusiasts.
Thiel emphasizes that approval of a single application could potentially open the floodgates to many more. However, he warns this doesn’t guarantee blanket approval for all applications. He also foresees the regulatory body’s inability to play favouritism in this industry.
PayPal’s recent stab into the crypto market with its stablecoin, PYUSD, alongside other novel developments, serve as markers of the wave of adoption just over the horizon. Bernstein’s study underscores the importance of a Bitcoin spot ETF approval, suggesting it could herald in a new market cycle, with novel liquidity elevating the market cap and transaction volumes in decentralized finance (DeFi) applications.
Finally, Thiel articulates the pressure on the SEC to demonstrate positive market outcomes. He underscores the need for the body to address the pending Coinbase lawsuit, guided by the case’s outcome with Ripple. The implications of these decisions will undeniably have lasting effects on the future landscape of cryptocurrency regulation.
Source: Cryptonews
