A groundbreaking event has hit the cryptocurrency sphere this week which might be a pointer to an auspicious precursory for the long-awaited spot Bitcoin ETF approval. The spotlight is on the wealth management firm, Bernstein, which recently made a magnificent triumph over the Securities and Exchange Commission (SEC), marking a second significant industry victory, following another partial achievement by Ripple a month ago.
Intriguingly, Bernstein’s recent success paves an encouraging path for an open review of Exchange-Traded Fund (ETF) applications, giving a good deal of relief following past rejections due to tough regulatory challenges. Remarkably, the SEC’s refusal to permit Grayscale’s product conversion from GBTC to spot ETF was dismissed by the court because it lacked sufficient distinction between spot and future ETFs, as Grayscale argued both can function within the same operational workflow. Notably, half a dozen ETF applications are pending, and the current situation seems to offer them a new lifeline.
However, things aren’t all rosy. As much as Bernstein’s victory marks a milestone, the SEC continues to hold the power of approval or rejection. There’s a silver lining, though – the SEC’s prior order has been suspended, with the commission required to review the application and provide distinctions between a future and spot ETF. The SEC also has up to 45 days to exercise its right to either appeal the decision or review and reject the application based on other grounds.
Consequently, the digital currency community has been swept up in a stir, especially since a spot BTC ETF approval could significantly affect the market. Indeed, Bitcoin‘s price surged past the $31,000 mark following multiple ETF applications by heavyweight institutions like BlackRock. Bernstein even anticipates that the impact of a spot ETF could amass up to 10% of Bitcoin’s market capitalization in three years, injecting fresh liquidity into the sector through increased institutional investment.
But a note of caution here – while the US court’s judgement is favourable, approval still could be a long journey, as the SEC retains its right of refusal. Thus, despite significant wins, like against Ripple and Grayscale, and them shaping the regulatory framework for an optimistic review process, the final call remains in the hands of the SEC.
Source: Cryptonews
