Crypto ETFs Ready to Expand Beyond Bitcoin
According to a senior analyst at the global asset management firm Bernstein, the approval of a spot Bitcoin (BTC) ETF is likely to pave the way for the emergence of multiple altcoin exchange-traded funds (ETFs).
Gautam Chhugani, who also serves as a managing director of global digital assets at Bernstein, mentioned that they anticipate that the opportunity for crypto ETFs won’t be limited to just Bitcoin but will expand to encompass various cryptocurrencies.
This belief is based on Grayscale’s recent legal victory over the U.S. Securities and Exchange Commission (SEC), which has provided clear guiding principles for regulators when evaluating applications for spot crypto ETFs.
In a recent development, a federal judge ruled in favor of Grayscale, mandating the SEC to reevaluate Grayscale’s request to convert the Grayscale Bitcoin Trust into a spot Bitcoin ETF.
Grayscale originally filed a lawsuit against the SEC in June 2022, alleging discrimination in rejecting their ETF application. The judge’s decision underscored the need for the SEC to revisit Grayscale’s application to ensure fairness and consistency.
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Subsequently, the SEC announced a delay in its decisions on numerous spot-based Bitcoin ETF applications, with a revised timeframe set for October.
Chhugani expressed optimism about the recent foundational advancements in the cryptocurrency space, emphasizing that these developments have bolstered confidence in the sector as a whole.
The positive outcomes in legal proceedings, enhanced prospects for ETFs, and growing institutional interest stand in stark contrast to previous crypto cycles led primarily by retail investors. This current cycle is unfolding more gradually but is underpinned by a solid regulatory clarity foundation and strategic long-term players’ participation.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
