Analysts Set New Potential Window for Spot Bitcoin ETF Approval
According to analysts at Bloomberg Intelligence, a decision on the first Bitcoin ETF could come as early as next March. The analysts believe that the Securities and Exchange Commission (SEC) could approve a Bitcoin ETF in the window between March and June of 2021. This window has been set with the expectation that the SEC will not be ready to make any decisions until after the US presidential election in November.
The analysts also noted that the SEC would likely approve a VanEck/ SolidX proposal for a physically-backed Bitcoin ETF. The approval of an ETF is seen as a major boon for the crypto industry, as it would provide easier access to major institutional investors and potentially provide greater liquidity. Some believe that the approval of a Bitcoin ETF could lead to greater price stability, as well as attract new capital into the sector.
Furthermore, the analysts believe that with the impending approval of a Bitcoin ETF, we could see a boom in the crypto economy, with Bitcoin reaching a more mainstream status. While a Bitcoin ETF has been in the works for several years, the positive developments and increasing interest from institutional investors has recently given momentum to the effort.
The proposal of a Bitcoin ETF has had its fair share of critics as well, with some stating that the asset class is not mature or liquid enough to be stewarded by financial regulators. However, the SEC appears to be inching closer to approving a Bitcoin ETF, and the Bloomberg Intelligence analysts believe a window of opportunity is open for approval as early as next March.