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Cantor Fitzgerald analysts foresee SEC greenlight for Bitcoin Spot ETFs

Cantor Fitzgerald Analysts Foresee SEC Greenlight for Bitcoin Spot ETFs

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TL;DR

  • Cantor Fitzgerald analysts Josh Siegler and Will Carlson indicate a growing likelihood of the U.S. Securities and Exchange Commission (SEC) approving Bitcoin Spot ETFs, based on recent revisions to applications and legal precedents.
  • The SEC appears more receptive to new proposals that include comprehensive surveillance-sharing agreements, a criteria fulfilled by Wall Street heavyweight BlackRock Inc., among others.
  • Despite the SEC’s historical caution toward Bitcoin Spot ETFs due to market manipulation fears, analysts believe that an approval would serve as a significant short-term price catalyst for Bitcoin and a milestone for its long-term adoption.

Cantor Fitzgerald, a preeminent financial services firm, indicates growing confidence in the U.S. Securities and Exchange Commission (SEC) approving Bitcoin Spot ETFs, according to a Bloomberg report. This stems from recent revisions made by asset managers to their applications for such funds. Josh Siegler and Will Carlson, research analysts at Cantor Fitzgerald, suggest that the SEC is now more likely to approve the new proposals than the previously rejected ones. Moreover, they reference a notable case involving BlackRock Inc., a Wall Street giant, and the legal triumph of Grayscale Investments LLC over the SEC to highlight the shifting dynamics.

Detailed criteria and precedents

Siegler and Carlson mention that the SEC has clarified its conditions for approval. A “comprehensive surveillance-sharing agreement with a regulated market of significant size” would meet the commission’s criteria, they state. Significantly, BlackRock’s application includes just such an agreement, which permits Nasdaq to scan for potential market manipulation. Additionally, other new applications have followed suit, incorporating surveillance-sharing provisions into their proposals.

On the legal front, the analysts bring attention to a federal court’s ruling in favor of Grayscale Investments, overturning the SEC’s earlier rejection. The court labeled the SEC’s decision as “arbitrary and capricious,” citing a lack of explanation for approving Bitcoin futures ETFs while rejecting Grayscale’s spot offering. Hence, these developments paint an optimistic picture for those awaiting the approval of Bitcoin Spot ETFs.

What makes these observations from Cantor Fitzgerald especially compelling is the recent surge in Bitcoin prices. Over the past two weeks, Bitcoin has appreciated about 25%, reaching a peak of more than $35,000—the highest level in nearly 18 months. This uptick, according to the analysts, has been partially fueled by rumors and anticipation surrounding the SEC’s likely approval of a Bitcoin Spot ETF. Siegler and Carlson underscore that such an approval would serve as an essential short-term catalyst for Bitcoin’s price.

It is noteworthy that the SEC has been historically cautious regarding Bitcoin Spot ETFs, often citing fears of market manipulation. However, this stance seems to be softening, particularly as applicants like BlackRock come forward with concrete surveillance mechanisms. Moreover, Cantor Fitzgerald’s analysts believe that the approval of a spot Bitcoin ETF in the U.S. would not only significantly impact Bitcoin’s price in the short term but would also be a defining moment for its long-term adoption and legitimization.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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