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- BlackRock’s spot Bitcoin ETF could potentially gain approval from the SEC within the next 3-6 months, according to former BlackRock executive Steven Schoenfield.
- The SEC’s shift in approach, seeking public feedback instead of issuing blanket denials for Bitcoin ETFs, and its recent legal loss to Grayscale, may hasten the approval of spot Bitcoin ETFs.
The world’s largest asset manager BlackRock created a massive buzz in the crypto market by filing for a spot Bitcoin ETF earlier this year in June 2023. However, just last week, the U.S. Securities and Exchange Commission (SEC) delayed the approval of BlackRock’s spot Bitcoin ETF.
But the wait could be over within the next 3-6 months according to former BlackRock managing director Steven Schoenfield. The CEO of MarketVector Indexes provided an updated timeframe assessment during a digital asset summit in London.
This came in response to Martin Bednall, another former BlackRock executive turned CEO, who believes that the SEC will approve multiple Bitcoin ETFs simultaneously to prevent granting advantages to any one applicant. Schoenfield’s revised timeline takes into account the SEC’s recent delay tactic, which he views as more favorable than outright rejections.
SEC’s Shift In Approach for Spot Bitcoin ETF
The SEC has shifted its approach by seeking more public feedback on pending Bitcoin ETF applications rather than issuing blanket denials, a change that Mark Schoenfield, CEO of MarketVector Indexes, views as a small but significant step towards dialogue that could expedite approval. He also mentioned the SEC’s loss in a legal battle with Grayscale regarding the conversion of its Bitcoin Trust into an ETF format, which could push the SEC to permit spot Bitcoin ETFs to launch.
Initially, Schoenfield estimated it would take 9–12 months to navigate regulatory hurdles for Bitcoin ETFs, but his updated estimate suggests greater confidence in the possibility of near-term launches. However, some experts advise caution and anticipate the SEC using various means to prolong the approval process. Despite this, there’s increasing pressure from multiple sources to accelerate a favorable decision.
The regulatory discussions continue as the first Bitcoin futures ETF approaches its one-year anniversary. Despite significant trading volumes, futures-based products lack the accessibility and direct exposure that many investors still desire. Approving a spot in Bitcoin ETF is seen as a significant milestone for attracting substantial institutional capital to the industry. While the SEC deliberates, firms like Grayscale are pursuing legal avenues to compel decisive action.
Along with BlackRock, there have been other big players like VanEck, Ark Invest, and others who are also waiting for the approval of the spot Bitcoin ETF. Several market analysts believe that the US SEC is likely to approve multiple spot Bitcoin ETFs at once. This would ensure a fair regulatory approach instead of giving anyone the first-mover advantage.
Bitcoin Price Action
Bitcoin started Q4 2023 on a pretty good note with the BTC price shooting past $28,000. However, the headwinds in the traditional financial market have pushed the BTC price under $27,500 with analysts confused about the next price direction.
Along with the possibility of BlackRock unveiling its spot Bitcoin in early 2024, analysts are excited about the Bitcoin halving in April 2024. Some market analysts believe that this could be the right time for investors to accumulate BTC and prepare for the next bull run.
