“If the effectiveness of Bitcoin Spot ETFs is proven, it is hard to resist”

Spot Bitcoin ETF applications from major asset management companies, especially BlackRock, have come one after another in recent weeks. The US Securities and Exchange Commission (SEC), which has so far rejected or withdrawn all spot Bitcoin ETF applications, will now reconsider these applications. Former US Securities and Exchange Commission (SEC) Chairman Jay Clayton, who rejected the spot Bitcoin ETF applications that came before him, said in a broadcast he attended on CNBC that it would be “hard to resist” the Bitcoin ETF approval if its effectiveness was proven.

Clayton, who chaired the SEC and is now senior policy adviser at international law firm Sullivan & Cromwell, during the rejection of many previous applications for Bitcoin spot ETFs, declined to speculate on when a Bitcoin spot ETF might be released.

The SEC has rejected past spot ETF applications amid concerns about how to shield investors from the erratic spot market, manipulation and lack of transparency. It also accepted futures ETF applications. Clayton clarified how the SEC has approved futures-based ETFs in the past. According to the former SEC chief, the SEC considers investor protections adequate in futures contract ETFs, but lacking in the spot market. The latest filing by investment giant BlackRock has created excitement that a spot Bitcoin ETF may finally be launched. The SEC first approved the number one cryptocurrency futures ETFs in 2021.

In a recent filing by BlackRock and others, Coinbase has been identified as a partner for market surveillance to increase transparency. The SEC is currently suing the US cryptocurrency platform for allegedly violating securities laws. Cryptocurrency investment firm Grayscale has sued the SEC for unfairly rejecting the spot Bitcoin ETF application.