- Coinbase’s Chief Legal Officer, Paul Grewal, is confident about the U.S. SEC granting approval for a Bitcoin ETF.
- Recent court decisions and regulatory shifts point to a potential shift in the U.S. stance on Bitcoin ETFs.
Coinbase’s principal legal luminary, Paul Grewal, has shed light on the evolving landscape of Bitcoin Exchange-Traded Funds (ETFs) in the U.S. Expressing his sentiments on CNBC, Grewal anticipates that the U.S. Securities and Exchange Commission (SEC) will approve a Bitcoin ETF
“in short order.”
Coinbase is 'confident' a U.S. bitcoin ETF will be approved after SEC's court defeat https://t.co/GcxjgiF1G8
— CNBC (@CNBC) October 20, 2023
The Turning Tide for Bitcoin ETFs
This optimism stems from a recent pivotal court ruling where the SEC was deemed unjustified in denying Grayscale’s application to transform its GBTC Bitcoin fund into an ETF. Notably, the regulator chose not to challenge the court’s judgment, fueling industry-wide speculation about forthcoming Bitcoin ETF sanctions.
While Grayscale’s parent entity, Digital Currency Group, faces its own set of legal challenges alongside the Gemini crypto exchange, the ambiance remains largely positive regarding the SEC approving additional Bitcoin ETFs.
However, Grewal refrained from providing a concrete timeline for these anticipated approvals. He emphasized that the SEC would adhere to its legal duties post the court’s decisive stance.
“After the U.S. Court of Appeals clarified that the SEC couldn’t decline these applications capriciously, I anticipate the commission will act accordingly. I’m quite sanguine about that,” elaborated Grewal.
For retail investors, this development could be a boon. They’d gain a conduit to Bitcoin exposure without direct crypto exchange interactions. As the preeminent crypto exchange in the U.S., Coinbase stands to garner substantial benefits from any green-lit Bitcoin ETF.
Grewal also shared perspectives on the ongoing trial of ex-FTX CEO, Sam Bankman-Fried, who is embroiled in charges of scheming against FTX stakeholders. From Coinbase’s vantage point, Grewal views these rigorous legal proceedings as indicative of the industry’s maturation, expressing encouragement that malevolent players are being held accountable.
Several significant players are jostling for approval to list their Bitcoin ETFs, including heavyweights like BlackRock, Fidelity, and Invesco. With Grayscale’s recent courtroom victory potentially setting a precedent, the overall sentiment hints at a changing tide for Bitcoin ETFs in the U.S. Grewal further iterated on the caliber of firms vying for these ETF approvals, stating,
“These firms are blue-chip titans in the financial arena, presenting formidable proposals for these coveted financial instruments.”