Coinbase Chief Legal Officer Paul Grewal recently used the law to make his case approval of a Spot Bitcoin Exchange Traded Fund (ETF) by the United States Securities and Exchange Commission (SEC), stressing that the US regulator must fulfill its responsibilities.
Coinbase CLO Optimism on Approval of a BTC ETF Point
In one interview on Friday, with CNBC’s Arjun Kharpal, Paul expressed optimism about the SEC’s approval of Bitcoin ETF filings. The Coinbase CLO said it is fairly confident the SEC will approve one soon spot Bitcoin ETFupholding his faith under the law.
“I am very optimistic that these [ETF] Applications will be accepted, if only because they have to be approved by law,” said Paul.
After the interview, Paul emphasized his confidence in the timely success of the approval, noting that companies that have come forward with well-structured ETF propositions for these products and services are critical players in the financial services industry.
I think the companies that have come forward with strong propositions for these products and services are among some of the biggest blue chips in financial services. This, I think, suggests that we will see progress there in a short period of time.
However, Paul did not provide a timeline for when the approval would take place, as the final decision on approval ultimately rests with the Securities and Exchange Commission. However, he remains confident that the US regulator is likely to approve a Bitcoin ETF in the short term due to recent developments.
Paul further bolstered his optimism after the SEC’s recent court setback, when a judge from the US Court of Appeals said the US regulator had no reason to deny Grayscale approval to convert Grayscale Bitcoin (BTC) into a spot Bitcoin ETF, calling the SEC decision a arbitrary movement.
“I think that after the US Court of Appeals made it clear that the SEC could not reject these applications on an arbitrary or capricious basis, we will see the commission fulfill its responsibilities. I’m very sure of that,” said Paul.
BTC breaks above $29,800 | Source: BTCUSD on Tradingview.com
In addition, Paul also emphasized the Failure of the SEC to appeal the decision indicating a possible approval of a spot BTC ETF soon within the specified time frame given to them by the court.
If a Spot ETF is approved, BTC could experience a major rally. A Bitcoin ETF serves as a means for investors to invest in BTC without having to directly purchase the digital asset from an exchange.
One of the biggest cryptocurrency exchanges that would benefit greatly from any Bitcoin ETF approval is Coinbase. This is because cryptocurrency exchange common stock is held in portfolios tailored to provide investors with exposure to cryptocurrencies.
Approval of JPMorgan On A Spot Bitcoin ETF
JPMorgan analysts also expressed their optimism for a Bitcoin ETF Approvalthat the ETF product could be available to the public from this Christmas.
Due to the recent developments following the approval of a Spot Bitcoin ETF, the financial giant believes that there is a high chance that an ETF will be approved before January 10, 2024.
In addition, analysts from Bloomberg also believe that there is a 90% chance a Bitcoin ETF will be approved next year.
Featured image from Forkast News, chart from Tradingview.com
