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.