Fred Thiel, the CEO of Marathon Digital, remains optimistic about the chances of the U.S. Securities and Exchange Commission (SEC) greenlighting a spot Bitcoin (BTC) Exchange Traded Fund (ETF).
While the SEC has so far refrained from approving a spot Bitcoin ETF, citing concerns over market manipulation, recent events have reignited discussions about when the Commission might give its nod.
With many crypto enthusiasts anticipating imminent approval, Thiel’s optimism is bolstered by the marked interest shown by significant institutional investors in recent weeks.
Thiel mentioned, “Predicting odds for such matters is tricky. However, the fact that industry giants like Larry Fink and BlackRock are venturing into this indicates they’re quite confident about securing approval.”
Thiel expanded on his perspective, pointing out that the SEC might be on the verge of greenlighting a spot Ethereum ETF. He referred to a report anticipating such an approval in October amidst several pending applications.
In Thiel’s assessment, an approval for Ethereum’s spot ETF could pave the way for Bitcoin. He commented, “If they give a nod to Ethereum, it naturally enhances the likelihood of a Bitcoin ETF seeing the light.”
Moreover, he emphasized that, in contrast to Ethereum, Bitcoin hasn’t been labeled a security by the SEC. This distinction could lead to more straightforward regulatory compliance for the cryptocurrency.
Echoing the sentiments of many in the digital asset sector, Thiel voiced his optimism. “I’m personally quite bullish on the matter. I genuinely believe the chances of the SEC endorsing it are greater than a coin toss.”
Institutional investors will swing the balance
The CEO of Marathon Digital highlights that the recent wave of optimism is closely tied to the rekindled interest from institutional investors in the crypto arena.
With over half a dozen applications in the queue for a spot BTC ETF, the involvement of prominent institutions like BlackRock and Fidelity Digital adds to the anticipation of many in the digital asset community that an approval might be right around the corner.
Thiel opined, “Once the seal is broken with the approval of one, it’s likely that multiple others will also get the nod. This doesn’t necessarily mean every application will be successful, but a good number might be. It’s improbable that the SEC would show bias by greenlighting only a single proposal.”
On a broader note, beyond just the ETF applications, innovations in the crypto sector, such as PayPal’s recent introduction of the PYUSD stablecoin, underscore the burgeoning adoption and interest in the digital currency landscape set to expand in the forthcoming years.
The potential impact of a spot BTC ETF on the market is a significant driver for the heightened anticipation. The flurry of applications, notably spearheaded by BlackRock, propelled Bitcoin’s price past the $31,000 mark, fueling speculations of an impending bull run.
Research conducted by Bernstein posits that the sanctioning of a spot BTC ETF could usher in a new phase in the market. This would be characterized by an influx of liquidity, resulting in an elevated market capitalization and a spike in transaction volumes, especially within the realm of decentralized finance (DeFi) platforms.
Concluding his thoughts, Thiel mentioned that the SEC might be inclined to see more favorable market outcomes to alleviate additional scrutiny. He expounded that it’s crucial for the Commission to reach a resolution in its ongoing lawsuit with Coinbase, taking cues from its previous legal tussle with Ripple.
