Bernstein Foresees a Wave of Altcoin ETFs Following Potential Bitcoin ETF Approval

- Advertisement -

• Bernstein’s senior analyst predicts multiple altcoin ETFs could emerge, contingent upon the approval of a spot Bitcoin ETF.
• Recent legal victories in the crypto domain, especially Grayscale’s triumph over the SEC, pave the way for a more receptive regulatory environment.

Bernstein’s Insight into the Crypto ETF Horizon

The winds of change in the cryptocurrency world are palpable, and one of its prominent harbingers is Bernstein, a colossal global asset management fund. Gautam Chhugani, donning dual hats as a senior analyst and the managing director of global digital assets at Bernstein, has shed light on a promising trajectory for the crypto ETF domain.

The groundwork for Chhugani’s prognosis is based on the groundbreaking legal win Grayscale secured against the U.S. Securities and Exchange Commission (SEC) recently. This victory has not only charted a decisive course for Grayscale but has also elucidated “unambiguous principles” for the regulatory authority. These principles are anticipated to play a pivotal role when the SEC deliberates on spot crypto ETF propositions in the future.

Chhugani articulates,

“Given the trajectory, the crypto ETF vista isn’t solely confined to Bitcoin. We envisage an expansion encompassing a diverse array of crypto assets.”

Delving deeper into the Grayscale-SEC tussle reveals a more intricate picture. Last week, a federal adjudicator pronounced that the SEC must reevaluate Grayscale’s proposition of transmuting its Grayscale Bitcoin Trust into a spot Bitcoin ETF. This mandate emerged from Grayscale’s lawsuit against the SEC in June 2022, where they contested the SEC’s ETF application refusal as biased. The presiding judge, in this case, accentuated that the SEC’s reassessment was essential to eschew any inkling of capriciousness and inconsistency in their decision-making.

Interestingly, the SEC later disclosed a postponement in their determinations on a myriad of spot Bitcoin ETF applications, deferring their verdicts until October.

Chhugani’s confidence in the crypto sphere’s future isn’t merely predicated on these legal nuances. He perceives a paradigm shift from the erstwhile retail-driven crypto surges to a more gradual yet robust ascent.

“The commendable legal outcomes we’ve observed, the burgeoning ETF prospects coupled with burgeoning institutional intrigue, starkly contrasts the earlier retail-centric crypto trends. Currently, the pace might seem languid, yet it’s anchored in robust regulatory transparency and the foray of strategic, long-haul stakeholders in the ecosystem,”

Chhugani remarks.