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- 1 Bloomberg Exchange-traded Fund (ETF) analysts predicted the approval of Bitcoin ETF by the end of 2023.
- 2 After the grayscale victory against the SEC, the chances of Bitcoin ETF approval rose by 75%.
On August 30, 2023, Eric Balchunas came up with a big breaking news that stirred the overall crypto market. The news was related to the Bitcoin ETF approval. Eric Balchunas is the Bloomberg senior ETF analyst, raising the probability of an approved spot Bitcoin ETF by the year’s end. He took the help of Twitter to make an announcement.
Bitcoin ETF
Bitcoin Exchange-traded Fund (ETF) adds to tracking the price of Bitcoin (BTC). Simply, they are pools of Bitcoin-related digital assets provided on traditional exchanges by brokerages to be traded as ETFs. Bitcoin ETF offers publicly traded securities that provide exposure to the price difference of BTC future contracts.
One of the major benefits of the Bitcoin ETF is that it allows investors to sell or buy Bitcoin without having an account on the cryptocurrency exchange. Recently, the Bitcoin ETF emerged as a hot topic with enhanced chances of getting approval by the end of 2023. The Twitter post of Eric Balchunas ensured the same.
Why is Eric so sure about the prediction?
“Bitcoin ETF may get approval by the end of 2023, there are 75% chances of getting approval”, Stated Eric Balchunas over social media platforms. The statement was made after the recent Grayscale victory against the federal securities regulator.
Grayscale Bitcoin Trust is one of the biggest BTC funds traded over the counter, with approximately $14 Billion in assets under control. The Trust terminated material agreements with its partners in October 2022. By November 16, 2022, the Trust paused withdrawals, stating unpredictable market conditions collapsing the cryptocurrency exchange FTX.
“The court collectively rejected SEC’s arguments, as a result, the agency is facing troubles in further justifying the case”, stated James Seyffart and Elliot Stein, Bloomberg analysts on August 30. Grayscale won an SEC lawsuit for Bitcoin ETF review.
On June 29, 2022, the SEC refused Grayscale’s request to transfer GBTC into a spot ETF. The next day, the senior legal strategist filed a petition for review with the US Court of Appeals for the District of Columbia circuit. According to James Seyffart, the chances of Bitcoin ETF approval skyrocketed, reaching 95%. However, the seven Bitcoin Spot ETF applications are due for getting the first deadline.
“It wouldn’t be surprising if the SEC delays the applications” stated Eric Balchunas over the current situation. He is sure that the outcome will be in his favor. “The most likely outcome will be that we unintentionally wake up to the SEC offering and approving the Bitcoin ETFs in one step”, He added.
Conclusion
Bloomberg’s senior ETF analyst, Eric Balchunas came up with a prediction of getting approval of the Bitcoin ETF by the end of the year. The analysis was made after Grayscale’s victory over the SEC case. There are 75% chance of getting approval on Bitcoin ETF as per the analyst’s prediction. According to James Seyffart and Elliot Stein, the court collectively rejected the SEC’s arguments that enhanced the chances of Bitcoin ETF approval.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
