- 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.
Also read: Why do whales accumulate millions of Arbitrum?
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.
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