Bloomberg Predicts Flood of Billions into BTC Market Post Spot ETF Approval

• Bloomberg analyst James Seyffart projects a 65% probability for the approval of a Bitcoin ETF by the US SEC this year, marking a substantial increase from just weeks prior.
• The rising anticipation is fueled by recent key events, including Grayscale’s triumph over the SEC in a legal case and SEC Chair Gary Gensler downplaying his influence over approvals.

A significant twist in the Bitcoin narrative is unfolding, as the probability of a Bitcoin ETF (Exchange Traded Fund) approval by the US Securities and Exchange Commission (SEC) escalates to a notable 65%, according to Bloomberg ETF analyst James Seyffart. This marks a dramatic surge from just weeks ago, with the odds previously languishing around the 1% mark only a few months prior.

Spot Bitcoin ETF Approval: Gaining Momentum

Seyffart, on August 2, suggested that the sudden boost in the odds of a Bitcoin ETF approval arises from recent happenings in the financial regulatory ecosystem. Critical factors include SEC Chair Gary Gensler’s downplayed role within the securities regulator, the SEC’s acceptance of Coinbase’s Bitcoin exchange, and Grayscale’s strategic moves to limit other filings.

A crucial tipping point was Grayscale’s legal victory over the SEC, anticipated to pave the way for potential multiple Bitcoin ETF approvals in the forthcoming Q4. Further fueling these expectations is the perceived pressure on the SEC from financial titan BlackRock to greenlight Bitcoin ETFs and the potential political hurdle Democrats might present in rejecting ETF proposals.

Seyffart shares an optimistic outlook, suggesting that the legal victory by Grayscale over the SEC may act as a catalyst for spot Bitcoin ETF approval. As evidence of the growing anticipation, Grayscale has penned a comment letter to the SEC concerning the spot Bitcoin ETF filings, proposing sufficient grounds for approval.

In tandem with the unfolding Bitcoin ETF narrative, several companies are concurrently applying for Ether ETFs. These include Volatility Shares, Bitwise, VanEck, Roundhill, ProShares, and Grayscale, hinting at an increasing interest in the broader crypto market. The present circumstances are intensifying pressure on the SEC and US Congress to approve not only Bitcoin ETFs but possibly Ethereum ETFs as well.

As the speculative fervor around the Bitcoin ETF approval builds, Bitcoin’s price has enjoyed a slight uptick, with a 2% increase observed in the past 24 hours. As of this writing, the digital asset is trading at approximately $29,454, indicative of the market’s heightened anticipation and increased optimism in the crypto sphere.