Anthony Scaramucci, the founder of SkyBridge Capital, is extremely optimistic regarding the approval of the spot Bitcoin ETF filings by the U.S. Securities and Exchange Commission (SEC). This transpires subsequent to the SEC officials’ consultation with Blackrock representatives regarding the prospective approval of the ETF.
Bitcoin ETFs will be here sooner rather than later
BTC’s price has recently been rising. This follows reports that Changpeng Zhao, the CEO of Binance, is stepping down. Many in the community expected this to have a negative impact on the price of Bitcoin and the wider crypto market, but it did not.
According to CoinGecko, the price of Bitcoin (BTC) is $38,302.45 today, with a 24-hour trading volume of $19,861,352,254.29. This indicates a 1.22% price increase in the last 24 hours and a 2.42% price increase in the last 7 days.
Also, the global crypto market valuation is now $1.51 trillion, a 1.89% increase over the last 24 hours and a 69.24% increase over a year ago. Bitcoin currently has a market cap of $749 billion, representing a 49.45% market share. Meanwhile, Stablecoins’ market cap is $130 billion, accounting for 8.59% of the total crypto market worth.
Scaramucci stated on a podcast that if asked directly whether the spot BTC ETF would be approved by January 10, 2023, he would respond “yes.” He went on to say that getting approval by January 10 makes the most sense and is the most likely outcome.
Several ETF registrations have a deadline of before January 10, which might pave the way for approval. However, the Commission may decide to extend the wait for technical reasons.
Blackrock, Fidelity, Valkyrie, and ARK Invest are among the financial behemoths fighting for the Securities and Exchange Commission’s approval of the first-ever spot Bitcoin ETF application. Analysts expect that the SEC will opt for mass acceptance of files to avoid a single company gaining first mover advantage.
Scaramucci maintained that the cash ETF approval was not completely priced in, highlighting the unappreciated strength of Wall Street’s marketing engine. Furthermore, he emphasized that while regular investors may currently dabble in Bitcoin, the major shift will occur when money managers managing billions intentionally commit 1% of their portfolios to Bitcoin.
The future of crypto ETFs in the United States
Scaramucci, a Wall Street veteran, emphasized the strategy shift by saying, “There’s this unspoken not-so-secret reality of Wall Street: products are sold, not bought.”
In his idea, typical ETF dealers would become BTC evangelists, advocating the cryptocurrency to a far larger audience.
He painted a vivid picture of the sales pitch, imagining folks who usually offer coffee and donuts during ETF presentations suddenly promoting Bitcoin ETFs. “Put 1% into Bitcoin,” they’d suggest, equipped with the story that Bitcoin had been the best-performing asset over the previous decade.
“The target audience for Bitcoin in an ETF is tens of thousands of people,” Scaramucci claims. By allowing investments ranging from $500 to “an infinite amount,” the ETF would appeal to a cross-section of investors seeking guidance from traditional brokers, including those using platforms such as E-Trade and Fidelity.
Scaramucci referenced the possible involvement of companies like Fidelity and BlackRock as he broke down the numbers, implying that a simple 1% commitment from these two behemoths could pump over $110 billion into BTC.
As of today, 13 BTC spot ETFs are fighting for approval, with industry observers predicting that one will be operational by January 2024.
As previously reported, another meeting was held between BlackRock representatives and SEC Trading and Markets division officials to negotiate on the spot Bitcoin ETF application. This meeting took place just over a week after the two parties met for the first time to discuss the cash model summary that may be used for the ETF.
In addition, the US SEC is said to be in talks with crypto exchanges on the changes needed for ETF operations. Among the bulk of spot Bitcoin ETF competitors, top US-based exchange Coinbase dominates the custodial area.