Bitcoin exchange-traded funds [ETFs] are still a hot topic of discussion. As the community speculates on the potential approval of these ETFs, a number of analysts are becoming increasingly positive about the likelihood of approval. Bloomberg analysts James Seyffart and Eric Balchunas, in particular, have heightened their more optimistic view regarding the possibility of Bitcoin ETF applications receiving the green light.
Seyffart recently shared on Twitter that both he and Balchunas raised their projected chances of spot Bitcoin ETF approval to 65%. It’s worth mentioning that just a few weeks ago, they had set the odds at 50%, indicating a significant increase in confidence. This revision also marks a substantial improvement from their previous prediction of a mere 1% probability, a couple of months back.
The analysts pointed out that various factors are influencing the situation. Gary Gensler, the chairman of the Securities and Exchange Commission [SEC], holds a crucial position in the approval process. They believe that pressure from BlackRock, a prominent financial firm, will also work in favor of the industry. They predict that Democrats may exert pressure on Gensler, making it politically unfavorable for him to deny the Bitcoin ETFs.
Also Read: SEC Names 8 Bitcoin ETF Applicants on Federal Register
Grayscale to play a vital role in Bitcoin ETF approvals
On June 29, 2022, the SEC declined Grayscale’s request to convert the Grayscale Bitcoin Trust into a spot Bitcoin ETF. On that very day, Grayscale lodged an appeal in a D.C. court, contesting the SEC’s ruling. The Bloomberg analysts highlight SEC’s potential legal setback against Grayscale as a factor that may support the approval of these ETFs.
Furthermore, the analysts also acknowledged Grayscale’s attempts to minimize competing filings. Recently, the company advocated for the simultaneous approval of all Bitcoin ETFs by the SEC.
The fate of these ETFs may still be uncertain. However, the forecast from Seyffart and Balchunas has instilled significant optimism within the community.
Also Read: Multiple Bitcoin ETFs Will Divert ‘Smart Money’ From Canada to U.S.