Ex-BlackRock Director Foresees SEC Approving Bitcoin ETF

TL;DR

• Martin Bednall, previously with BlackRock, believes that the U.S. SEC is inclined to greenlight all spot Bitcoin ETF applications simultaneously.
• Steven Schoenfeld, the CEO of MarketVector Indexes under VanEck, concurred, suggesting that the approvals might be seen in the upcoming 3 to 6 months.

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BlackRock Director Predicts An Approval of a Spot Bitcoin ETF

Martin Bednall, ex-managing director of BlackRock and the present CEO of Jacobi Asset Management, believes the SEC might give the nod to multiple spot Bitcoin ETF applications simultaneously.

Speaking at the CCData Digital Asset Summit recently, Bednall, who dedicated over a decade at BlackRock, remarked: 

It seems improbable that the SEC would favor any single entity with a pioneer advantage.” 

Martin Bednall, ex-managing director of BlackRock

He further opined that such approvals would considerably bolster the cryptocurrency markets.

Echoing Bednall’s sentiments, Steven Schoenfeld, the CEO of MarketVector Indexes, a subsidiary of VanEck, stated it’s highly probable the SEC will greenlight all Bitcoin ETF applications in one go. 

Schoenfeld shared his revised perspective on the timeline, 

“While a fortnight ago, I would’ve anticipated a 9 to 12-month wait for approval, today, a 3 to 6-month window seems more realistic.”

Steven Schoenfeld, the CEO of MarketVector Indexes

He credited this altered outlook to the SEC’s recent approach. Instead of outrightly dismissing ETF applications, they have been inviting commentary. 

Schoenfeld also pointed out the SEC’s defeat in the Grayscale litigation, suggesting this could compel the commission to permit the transformation of the Grayscale Bitcoin trust into a spot Bitcoin ETF.

BlackRock’s Close Ties with Regulators Suggest Likely Bitcoin ETF Approval

Bednall suggests that BlackRock’s initiative to submit a spot Bitcoin ETF application indicates their optimism about obtaining a green light from the SEC. 

Given BlackRock’s strong connections with global regulatory bodies and their extensive regulatory division, they’re likely receiving positive signals.

As the globe’s leading asset manager, BlackRock maintains solid ties with significant investors, including pension funds and endowments. 

Christophe de la Celle, Managing Director at Numeus, a cryptocurrency investment company, highlighted during the discussion with Bednall and Schoenfeld that BlackRock would pave the way for these institutional investors entering the crypto domain.

Celle sees this as a highly favorable development for the cryptocurrency sector.

Schoenfeld further projected that once spot bitcoin ETFs receive approval, there might be a monumental surge of $150 to $200B into Bitcoin investment tools over three years. 

Such an influx could amplify the assets under management (AUM) for existing Bitcoin products two or three-fold.

Ethereum Spot ETF Developments

Last month, Ark Invest, spearheaded by Cathie Wood, alongside cryptocurrency asset manager 21Shares, lodged an application with the SEC for the inaugural Ether spot ETF. 

Grayscale followed suit this week, initiating steps to transform its Ethereum trust into a spot Ether ETF.

This action by Grayscale occurred shortly after VanEck and ProShares unveiled their Ether futures-based ETFs. 

Even though these products experienced modest trading volumes initially, the panelists believe spot ether ETFs could garner significant interest. 

This is attributed to Ether’s staking incentives, superior environmental, social, and governance rating, and its more eco-friendly nature than Bitcoin.

The panel’s consensus is that the SEC’s green light for spot Ether ETFs will likely come shortly after they endorse spot Bitcoin ETFs.

Do you think the SEC will approve the spot Bitcoin and Ether ETFs?

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