The crypto industry has long viewed the approval of a Bitcoin Exchange Traded Fund (ETF) as the catalyst that would spark the next parabolic rally and usher in a new era of unprecedented adoption and growth.
These hopes have largely subsided in recent times after VanEck/SolidX withdrew their highly anticipated Bitcoin ETF application, which signaled to the markets that regulators were likely unready to approve the ETF.
Despite this, new comments from the head of research at Bitwise – who currently has a Bitcoin ETF application pending review from regulators – may rekindle these hopes, as he believes that they are closer to ever to gaining the SEC’s approval.
Bitcoin ETF Application Approval May Be Imminent
During a recent interview with CNBC, Matt Hougan, the managing director and global head of research at Bitwise, explained that he and his firm are still optimistic about the fate of their BTC ETF application garnering the favor of regulators, explaining that “We’re closer than we’ve ever been before to getting a bitcoin ETF approved.”
Hougan further added that the SEC must offer Bitwise a final decision on their application by Monday, which means that there could be a publicly traded Bitcoin fund in the very near-future.
“Sometime before Monday, the SEC has to give its decision: yes or no. They have no more ways to postpone it at this point… We will hear clearly between now and Monday what they think, and then, depending on what we hear, we’ll go forward from there. But it should be a very exciting week,” he noted.
It is important to note that many analysts and industry insiders have noted that regulators in the US are not yet comfortable enough with Bitcoin and digital assets to begin approving funds that are centered around nascent markets.
Hougan, however, notes that the market conditions surrounding Bitcoin have improved significantly in recent times, with regulated custodians now supporting institutional buyers within the markets, and major exchanges opting to become fully regulated entities.
“Two years ago, there were no regulated, insured custodians in the bitcoin market. Today… there are big names like Fidelity and Coinbase… Two years ago, there were no regulated crypto exchanges. Now, six of the 10 big crypto exchanges are regulated by the New York Department of State with market surveillance technologies in place. And, most importantly, two years ago, it was a one-sided, inefficient market. Today, we have $200-plus million in volume…,” he stated.
The coming week may hold in store an unanticipated surprise if the ETF is approved, although investors likely won’t be holding their breath when it comes to a “Hail-Mary” event like the approval of a BTC ETF.