Asset management firm Bernstein has predicted that the U.S. SEC will approve its first spot bitcoin exchange-traded fund (ETF) between mid-October and mid-March next year, with the analyst believing it could extend to multiple crypto assets.




Asset management firm Bernstein has made a prediction that the U.S. Securities and Exchange Commission (SEC) will approve its first spot bitcoin exchange-traded fund (ETF) by mid-March next year. Gautam Chhugani, Managing Director and Senior Analyst of Global Digital Assets at Bernstein, stated that the recent court ruling in favor of crypto asset manager Grayscale Investments regarding its proposed bitcoin ETF conversion is a "game changer."


According to Chhugani, this ruling not only benefits Grayscale but also sets clear principles for regulators to evaluate spot crypto ETF applications. He further suggested that the crypto ETF opportunity wouldn't be limited to just bitcoin but could extend to various crypto assets.


Chhugani emphasized that the crypto industry is undergoing a different cycle compared to the past, with stronger fundamentals, regulatory clarity, and institutional interest. He believes this new cycle, while slower to take off, is built on a more robust foundation.


The recent legal developments, including the partial ruling in favor of Ripple Labs against the SEC and the Grayscale decision, indicate a shift in the regulatory landscape. These rulings challenge the SEC's arguments against approving spot bitcoin ETFs, particularly the concerns related to market manipulation.


Chhugani's prediction is that the crypto industry will see its first bitcoin ETF approved by the SEC between mid-October and mid-March 2024, aligning with the scheduled review dates. The SEC has previously delayed decisions on all spot bitcoin ETF applications, including one from Blackrock, the world's largest asset manager. Former SEC Chair Jay Clayton has also expressed that approval of a spot bitcoin ETF is inevitable, given the clear demand from institutional investors.


(Kevin Helms, Bitcoin News, 2023)