The US Securities and Exchange Commission’s (SEC) Hester Peirce faulted the regulator for continued delay in approving the applications pending for the exchange-traded fund (ETF). The dissenting commissioner’s comments dominated the crypto platforms, urging speedy approval since the SEC lacks ground to deny the approval for spot Bitcoin ETF.
The comments triggered an unprecedented 3% pump in Bitcoin prices, with the community interpreting this as a positive sign of ETF approval. Pierce’s statement triggered liveliness among ETF enthusiasts as she stated publicly that the SEC should never become the hindrance to denying ETF approval.
Commissioner Peirce Admit SEC Lacks Reason to Deny Bitcoin ETF
Peirce’s comments featured in the Tuesday, November 21 interview with Bloomberg ruled out the existence of reasons not to approve the Bitcoin exchange-traded product.
While the interview was conducted on Monday, November 20, the content recirculated this afternoon, prompting reaction across the digital assets. As such, the Bitcoin leapt 3% to exchange hands above $37700.
A review of the market activity this week shows the industry dominated by rumours of imminent approval by the Gary Gensler-chaired SEC. The rumours are pumping the Bitcoin price to yearly high figures.
The rumours advance JP Morgan predicted in its October report that that Bitcoin-supported financial product is attracting interest from Wall Street firms led by BlackRock, Fidelity and Ark Invest.
The US investment bank indicated that the exchange traded product tracking Bitcoin price is likely to receive approval by Christmas. It backed its production by indicating that the SEC’s choice of last week is logical given the need to punt decisions on involving Bitcoin ETF applications into 2024.
JPMorgan has, in earlier reports, profiled Bitcoin ETF as a unique investment product allowing the holders to secure exposure to the lead crypto asset without exercising ownership rights to the underlying assets directly.
Wall Street Asset Managers Portray Growing Interest in Bitcoin ETF
Peirce’s comments coincide with a period when the SEC was reviewing applications from Grayscale Bitcoin Trust (GBTC) following its court’s victory, directing the regulator to reconsider the application. Also, the SEC met with representatives drawn from Lary Fink’s BlackRock since its bid for the ETF in mid-2023.
The recent round of talks between SEC and applicants is interpreted as a positive development, considering that crypto-native asset managers have complained of religious dismissal of applications in the past decade.
Crypto-native asset managers joined by Wall Street firms consider the amended applications to satisfy the requirements sought by the SEC to approve the spot Bitcoin ETF. The securities watchdog has rejected applications in the past, alleging their susceptibility to market manipulation.
The situation changed following BlackRock’s entry into the ring in June. The applications by the most significant asset managers have been perceived as growing interest by Wall Street titans in the cryptocurrency industry.
Commissioner Peirce Unlikely to Influence Bitcoin ETF Approval
Market observers have predicted that approving the spot Bitcoin ETF could trigger a wild uptake of cryptocurrency among Wall Street firms. Blockchain analyst firm CryptoQuant previously predicted that spot Bitcoin ETF could trigger a $1 trillion flow into digital assets.
While Peirce sits among the five commissioners deciding the fate of the dozen applications for spot Bitcoin ETF, she represents the Republican minority within the SEC. She has in the past long butted heads with the SEC chair from the democratic majority accusing Gary Gensler of overseeing regulation by enforcement.
Pierce has emphatically denounced the enforcement actions imposed by the SEC against various crypto companies. She repeatedly expressed support for the spot Bitcoin ETF since 2018.
Although Peirce’s recent statements would hardly translate to the imminent approval of Bitcoin ETF, such would still trigger a response in the crypto market. The resulting price movement, as witnessed following the viral comment from a Bloomberg interview, shows the potential value harboured in the spot Bitcoin ETF approval.
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