Paul Grewal, the Chief Legal Officer (CLO) of Coinbase Global Inc. has expressed confidence and expectation towards a spot Bitcoin (BTC) Exchange Traded Fund (ETF) approval from the United States Securities and Exchange Commission (SEC).
Grewal is optimistic the regulator will fulfill its responsibilities by approval the highly sought-after investment product
Spot BTC ETF Approval Coming Soon
In a chat with CNBC, the Coinbase CLO highlighted that the American cryptocurrency exchange strongly believes that the U.S. regulator will approve the applications to list the new spot BTC ETF offering. Markedly, Grewal did not say anything about when he expects the approval to come or the sequence to which it would come.
“I’m quite hopeful that these [ETF] applications will be granted, if only because they should be granted under the law,” Grewal said.
His opinion further underscores the stance of two Bloomberg ETF analysts who recently outlined the odds of approval of a spot Bitcoin ETF by the SEC. Eric Balchunas and James Seyffart raised the chances of spot Bitcoin ETF approval to 90% after fixing it at 75% in an earlier projection. The progression in the value designated as the odds of getting an approval shows the level of confidence that these analysts have in the decision of the regulator.
Also, the recent move by the SEC in its lawsuit with Grayscale suggests that a bitcoin-related ETF may be coming in the coming months. Following a judge’s ruling that the SEC did not have a basis for rejecting Grayscale’s bid to convert its Bitcoin Trust into a physically-backed ETF, there were high expectations that the regulator would appeal the ruling, like it tried to do in the case of Ripple Labs and XRP.
However, in a shocking revelation, the regulator decided that it was not going to appeal the court’s ruling. This means that Grayscale now has a higher possibility of turning its GBTC to an ETF.
Top Players in the Bitcoin ETF Race
There are a number of industry giants seeking approval to list the Bitcoin ETF product including BlackRock, Fidelity and Invesco. Apart from the little victories snatched thus far, the Coinbase CLO believes that the status and reputation of most of the applicants will play a part in getting an approval this time around.
“I think that the firms that have stepped forward with robust proposals for these products and services are among some of the biggest blue chips in financial services,” Grewal added.
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