In the midst of the recent exchange-traded fund (ETF) craze, speculation on a potential Bitcoin bull run has increased. Leading analyst Dave Weisberger’s observations have fueled the fire even further.
He recently stated that there is a good possibility the Securities and Exchange Commission (SEC) of the United States would approve BlackRock’s planned Bitcoin spot ETF.
The feeling is that an expected acceptance would act as a spark for another Bitcoin boom.
Weisberger said that, with the exception of a potential prejudice against Bitcoin, BlackRock’s ETF proposal appeared to answer all of the SEC’s concerns.
This means that the asset management behemoth’s application for a Bitcoin ETF effectively addresses the SEC’s previous concerns about market manipulation and monitoring, which have historically been obstacles to approval.
A number of high-profile failures have marred the arduous route towards the creation of a Bitcoin ETF. The attempt by the Winklevoss twins, Cameron and Tyler, who are well-known for their early involvement with Facebook, is a good illustration. In 2013, the team launched a trailblazing attempt to launch a Bitcoin ETF, which catapulted them into the spotlight of this continuing saga.
Despite their best efforts, the U.S. Securities and Exchange Commission (SEC) rejected their application twice, once in 2017 and once in 2018, mostly because of the possibility of fraudulent and manipulative practises in the Bitcoin market.
BlackRock’s Bitcoin ETF may receive approval from the SEC, opening the door for a substantial influx of institutional capital into the cryptocurrency market. A Bitcoin ETF is anticipated to follow the trend of mainstream investors and institutions choosing ETFs as a safer haven. The price of Bitcoin has already started to rise as a result of the growing apprehension surrounding this prospect.
But it’s crucial to keep in mind that the SEC’s decision is not yet final. Decisions for bitcoin ETFs have been known to be delayed by the commission. But the presence of BlackRock, a genuine behemoth in the field, might tilt the balances in favour of a successful conclusion.
