Founder of SkyBridge Capital, Anthony Scaramucci, is optimistic about the US SEC (Securities and Exchange Commission) approving a spot Bitcoin (BTC) ETF (Exchange Traded Fund) soon. While speaking at a podcast, Scaramucci affirmed that the SEC could greenlight a spot BTC ETF by Jan. 10, 2024. Several spot BTC ETF applications will approach their deadline in early January. However, the SEC may also delay its decision due to technical reasons.
Financial institutions in the US have long pursued a spot BTC ETF. Blackrock, Fidelity, Valkyrie, and ARK Invest are among the top applicants. Some analysts have said the SEC might go for a mass-approval route to not give one firm a competitive edge over others.
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BlackRock recently met with the SEC’s Trading & Markets division to further discuss its Bitcoin ETF application. The SEC said applicants should opt for a cash crates model instead of an in-kind model. However, BlackRock, the largest asset manager in the world, most likely prefers the in-kind redemption model.
Will a spot Bitcoin ETF bring forth a bull run?
A spot BTC ETF could lead to a surge in institutional adoption of the original cryptocurrency. Many analysts anticipate the markets to rally if a spot BTC ETF is approved. The anticipation of a bull run has led to many investors stocking up on BTC. Microstrategy, one of the biggest BTC holders in the world, recently purchased an additional 16,130 BTC for around $593 million. The firm currently holds roughly 174,530 BTC, worth a whopping $5.28 billion. The average purchasing cost of each coin is around $30,252. With BTC trading above $38k, the firm is in the money with its holdings.
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Along with the possibility of a spot BTC ETF approval, we will witness the next halving cycle for Bitcoin in April 2024. Both developments could usher in another bull run for the cryptocurrency market.