- Circle CEO Jeremy Allaire says the US Securities and Exchange Commission is more likely to approve spot Bitcoin ETFs, according to a Bloomberg report.
- Allaire says that the regulator’s past concerns with the investment product have been addressed.
- SEC’s approval could catalyze a market recovery for Bitcoin, Ethereum and altcoins.
The US Securities and Exchange Commission (SEC) is more likely to approve a spot Bitcoin Exchange Traded fund (ETF) because the financial regulator’s concerns about it have largely been addressed, Jeremy Allaire, CEO at global fintech firm Circle, said Tuesday in a Bloomberg interview.
Giving the green light to an ETF could catalyze a recovery in crypto market capitalization in the long term, with the potential to offset recent losses stemming from the SEC’s crackdown on cryptocurrencies.
Conditions look favorable for spot Bitcoin ETFs
In an interview at the World Economic Forum, Allaire told Bloomberg that he expects the US financial regulator to approve spot Bitcoin ETFs. The Circle executive backs his belief with the fact that market structures are more mature than they were the before, when spot ETF applications were filed by institutions.
Moreover, past concerns of the SEC have been addressed and there is better market surveillance, he said. These changes should be conducive to the SEC’s approval of a spot Bitcoin ETF.
I think progress is being made. You have mature spot markets, well-regulated custody infrastructure, market surveillance. Many of the things that have been concerns in the past are being addressed.
The US SEC has received several spot Bitcoin ETF applications from traditional finance giants like BlackRock, Invesco and WisdomTree. The regulator’s approval could open up the floodgates to mass infusion of institutional funds in cryptocurrencies through these funds.
Bitcoin, Ethereum and altcoins could benefit from ETF approvals
The SEC’s crackdown on cryptocurrencies at the beginning of June wiped out billions of dollars from market capitalization. The regulator labeled nearly 60 cryptocurrencies as securities, prompting falls in prices and their market capitalization. Bitcoin’s dominance increased from 44.71% to 48.31% over the past month.
The SEC’s approval could catalyze a recovery in altcoins. With higher capital inflow from retail and institutional investors, cryptocurrency market capitalization could recover to previously seen levels of $1.256 trillion.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.