Approval of new Bitcoin ETF in the USA: Closer than ever

The approval of a Bitcoin Exchange-Traded Fund (ETF) in the United States has been a subject of debate and speculation for a long time. However, recent statements from former executives of BlackRock, one of the world’s largest asset managers, suggest that this milestone might be much closer than we previously thought.

During a panel discussion on ETFs at CCData’s Digital Asset Summit in London, former BlackRock CEO Steven Schoenfield, who now leads MarketVector Indexes, shared his perspective on the approval process of a Bitcoin ETF in the United States. The most surprising aspect of his statement was the timeframe he proposed: “three to six months.” This marks a significant change from his previous forecast of “nine to twelve months.”

So, What has Changed?

The key seems to lie in the attitude of the U.S. Securities and Exchange Commission (SEC). Instead of outright rejecting Bitcoin ETF applications, as was the norm in the past, the SEC is now soliciting industry feedback. Schoenfield described this as a “significant improvement in dialogue,” suggesting a more collaborative approach by the regulator.

Additionally, Schoenfield highlighted another important factor: the lawsuit against Grayscale. The SEC’s defeat in this legal battle could increase the chances of the Grayscale Bitcoin Trust transforming into an ETF. This could have a significant impact on the approval of other Bitcoin ETFs.

In this race for Bitcoin ETF approval, BlackRock is in a privileged position due to its enormous assets under management, amounting to $9.42 trillion. The firm also boasts an impressive track record in terms of SEC ETF approvals, with a success rate of 575-1, clearly demonstrating its expertise in navigating the regulatory process.

Despite its enviable position, BlackRock doesn’t have the path as clear as it may seem. These days, there are other companies aggressively competing in the digital asset space. Some of these firms are even more deeply rooted in the crypto ecosystem than BlackRock, indicating that the battle for Bitcoin ETF approval will be intense.

The approval of a Bitcoin ETF is not only important for BlackRock and other financial companies, but it could also have a significant impact on the cryptocurrency market as a whole. The estimate is that there could be an influx of $150 to $200 billion into Bitcoin investment products over the next three years if an ETF is approved in the near future.