- Former BlackRock director hints at imminent SEC approval of long-anticipated Bitcoin spot ETFs.
- Industry momentum builds as asset managers diversify into ethereum and other cryptocurrencies in anticipation.
BlackRock at the Epicenter of Crypto Enthusiasm
Bitcoin, ethereum, and Ripple‘s XRP have experienced significant volatility this year, partially influenced by decisions from the Federal Reserve. Notably, Bitcoin’s value has surged by roughly 70% within the year, a rally that many attribute to BlackRock, the colossal asset manager overseeing assets worth an approximate $10 trillion. This behemoth’s movements have invariably intensified Wall Street’s attention on both Bitcoin and the wider cryptocurrency sphere.
Amid this backdrop, a former BlackRock managing director, Steven Schoenfield, recently made a forecast that has electrified the crypto community. Speaking at a conference in London, Schoenfield projected that the U.S. Securities and Exchange Commission (SEC) is on the brink of green-lighting a long-anticipated bitcoin spot exchange-traded fund (ETF). Such a move would effectively open the floodgates for funds managing a staggering $17.7 trillion in assets to dive into the crypto arena.
The SEC’s Deliberate Path to Approval
Schoenfield’s insights provide a keen perspective into the SEC’s current thought process. He suggests that the SEC would likely approve all Bitcoin spot ETF applications in unison, avoiding any preferential treatment that would benefit early birds. His timeline for such approvals? A brisk
“three to six months.”
Adding intrigue to the unfolding narrative, the SEC, rather than dismissing a slew of prominent Bitcoin spot ETF applications, opted for a delay in their decisions, inviting comments instead. This shift, Schoenfield implies, denotes a marked progression in the SEC’s approach.
One noteworthy subplot is the directive from U.S. legislators urging the SEC to revisit the application from crypto asset manager Greyscale. The application’s essence is the transformation of its flagship bitcoin trust into a full-blown bitcoin spot ETF. Schoenfield expressed confidence, noting that the conversion into an ETF is probably inevitable.
However, since the buzz generated by BlackRock’s pivotal bitcoin spot ETF submission, the overall cryptocurrency market has witnessed a lull. Swarm Markets’ co-founder, Timo Lehes, captures this sentiment aptly, stating that the entire market appears to be in a state of anticipation, eagerly awaiting the SEC’s nod to Bitcoin spot ETFs. Simultaneously, he observes a growing trend among smaller asset managers, like Valkyrie and VanEck, broadening their portfolios beyond Bitcoin, especially towards ethereum.
This diversification strategy seems to be in preparation for the entry of major institutional players into the bitcoin ETF arena.