Jay Clayton, the former chairman of the United States Securities and Exchange Commission (SEC), has stated in a January 8 interview with CNBC that the approval of a spot Bitcoin ETF in the United States is now “inevitable.”
For the past decade, the SEC had consistently denied applications for spot Bitcoin ETFs, citing concerns about potential market manipulation and fraud. However, Clayton now believes that approval for such an ETF is “imminent,” noting the significant improvements in the underlying dynamics of the Bitcoin market over the past five years.
Clayton acknowledged that five years ago, issues like wash sales and laddering posed risks that made it unsuitable for general public investment. He also praised the regulator for becoming more comfortable with Bitcoin ETF disclosures from firms like BlackRock and Fidelity.
One major factor contributing to this change is the improved infrastructure for safely custoding and securing Bitcoin, making it more accessible to traditional financial market participants.
Beyond cryptocurrency markets, Clayton emphasized the potential of blockchain technology to tokenize and trade real-world assets, which could have a transformative impact on finance as a whole.
On January 8, a wave of amended S-1 and S-3 filings from potential Bitcoin ETF issuers was submitted to the SEC, revealing the fees they intend to charge for their products once approved. Analysts like James Seyffart from Bloomberg ETF suggested that the influx of these filings indicated an acceleration in the SEC’s actions regarding Bitcoin ETFs. Seyffart and his colleague Eric Balchunas estimated a 90% likelihood of a spot Bitcoin ETF approval by January 10.
Seyffart also noted that investors should expect additional amendments and comments on S-1 and S-3 filings in the coming days, but these are unlikely to be seen as a “delay signal” for the ETFs, suggesting a high likelihood of approval.
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