Paul Grewal, the Chief Legal Officer (CLO) of Coinbase Global, has voiced his optimism about the U.S. Securities and Exchange Commission (SEC) granting approval for a spot Bitcoin (BTC) Exchange Traded Fund (ETF). Grewal firmly believes that the SEC will fulfill its regulatory responsibilities and greenlight the much-anticipated investment product. This sentiment comes amid ongoing positive dialogues between the SEC and various Bitcoin ETF applicants.
The path towards the approval of a spot Bitcoin ETF appears promising. In a recent conversation with CNBC, Coinbase’s CLO emphasized the exchange’s strong belief that the U.S. regulator will ultimately approve applications for the new spot BTC ETF offering. Notably, Grewal did not specify a timeline for when this approval might be granted, nor did he outline the sequence in which it would occur.
Grewal’s sentiment aligns with the views of two Bloomberg ETF analysts, Eric Balchunas and James Seyffart, who have significantly increased the likelihood of SEC approval for a spot Bitcoin ETF. They initially estimated the odds at 75%, but have now raised it to 90%, reflecting their high level of confidence in the regulator’s forthcoming decision.
Furthermore, recent developments in the SEC’s legal dispute with Grayscale suggest that a Bitcoin-related ETF may soon become a reality. Following a judge’s ruling that the SEC lacked grounds to reject Grayscale’s proposal to convert its Bitcoin Trust into a physically-backed ETF, expectations have surged that the regulator may no longer appeal, as it did in the case of Ripple Labs and XRP. This decision paves the way for Grayscale to potentially transform its GBTC into an ETF.
Numerous industry giants, including BlackRock, Fidelity, and Invesco, are vying for approval to list a Bitcoin ETF product. Beyond their previous successes, Coinbase’s CLO underscores the influence of the reputation and stature of these applicants in securing approval this time around.
“I think that the firms that have put forth comprehensive proposals for these financial products and services are among the most significant players in the financial industry,” Grewal added.
