- Ex-BlackRock director, Steven Schoenfield, anticipates Bitcoin spot ETF approval within 3-6 months, observing shifting regulatory approaches.
- The SEC’s recent shift from blanket denials to seeking public feedback on Bitcoin ETF applications marks a constructive pivot.
The Changing Tide of Bitcoin ETF Regulation
As the dynamic landscape of cryptocurrency regulation continues to evolve, former BlackRock managing director Steven Schoenfield brings fresh insights to the table. Addressing an audience at a renowned London digital asset summit, Schoenfield, now the CEO of MarketVector Indexes, expounds on the potential timeline for the Securities and Exchange Commission (SEC) to endorse a Bitcoin spot Exchange-Traded Fund (ETF).
In a response to Martin Bednall, another BlackRock alum and current CEO, there’s a sentiment that the SEC might sanction several Bitcoin ETFs concurrently. This move would be strategic, ensuring no particular entity gains an undue first-mover advantage. The hypothesis that the SEC’s recent postponement strategies seem more constructive than outright denials underpins Bednall’s viewpoint.
Schoenfield discerns a more proactive stance from the SEC lately, which notably contrasts their previous approach. Rather than persisting with sweeping denials, the regulatory body is now gravitating towards soliciting broader public input on looming Bitcoin ETF proposals. Labeling this shift as a “marginal but meaningful” move, Schoenfield interprets it as an inclination towards a dialogue-driven approach, possibly hastening the approval process.
Factors Amplifying the Approval Momentum
Several circumstantial developments further bolster this optimistic stance. Schoenfield highlights a recent setback faced by the SEC—a legal challenge mounted by Grayscale pertaining to the transformation of its Bitcoin Trust into an ETF. Such a defeat could corner the SEC into permitting the inception of spot Bitcoin ETFs.
Rewinding the clock, Schoenfield had previously projected a 9-12 month window for surpassing regulatory barriers concerning Bitcoin ETFs. However, this revamped estimate—shortened to a mere few months—radiates a heightened assurance in imminent product rollouts.
While some industry mavens advise a blend of restraint and hopefulness, postulating that the SEC might leverage every avenue to extend the approval tenure, it’s undeniable that multifaceted pressures are intensifying, nudging towards a favorable resolution.
Simultaneously, as the debut Bitcoin futures ETF approaches its maiden anniversary, the clamor for a spot Bitcoin ETF grows louder. Though futures-driven offerings have witnessed voluminous trades, they haven’t replicated the direct exposure and accessibility many investors ardently desire. With the industry viewing the nod for a spot Bitcoin ETF as a seminal moment, entities like Grayscale are navigating legal pathways to expedite the SEC’s decision-making.
