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Spot Bitcoin ETF in the US to be approved according to opinions of Jay Clayton, former chairman of the SEC

  • Jay Clayton and Neomi Rao, former SEC Chairman and Circuit Judge, respectively, share optimistic views on the approval of spot Bitcoin ETFs in the United States.
  • The SEC extends the review period for ETF applications submitted by prominent financial entities, suggesting a close focus on approving high-quality ETFs.
  • Correcting the disparity between futures and cash products is a focal point in the approval process, and the next key deadline is scheduled for October 7.

Currently, one of the most prominent topics in the world of cryptocurrencies and investments is the possible approval of spot Bitcoin exchange-traded funds (ETFs) in the United States.

Despite some delays in decisions by the United States Securities and Exchange Commission (SEC), former SEC Chairman Jay Clayton remains firmly optimistic about the imminent approval of these ETFs.

Financial Institution Support and Extension of Bitcoin Spot ETF Review Period

In a recent interview with CNBC on September 1, Clayton highlighted that major financial institutions’ support for Bitcoin (BTC) investments shows a significant shift in retail investors’ access to cryptocurrencies. This reflects a growing acceptance and legitimacy of Bitcoin in the financial world.

However, on August 31, the SEC announced the extension of an additional 45 days of the review period for several Bitcoin spot ETF applications filed by prominent entities such as BlackRock, WisdomTree, VanEck, Invesco Galaxy, Bitwise, Valkyrie and Fidelity .

Despite this delay, Clayton is confident in the progress of these efforts and notes that progress can be expected as the process progresses.

The SEC has the flexibility to extend application deadlines until March 2024, allowing for a thorough evaluation.

Recommended article: Guide to investing in cryptocurrencies in 2023

Correcting the disparity between Futures and Cash

Clayton highlights the disparity between futures products and cash products as a crucial point.

He argues that this discrepancy cannot persist indefinitely and that the approval of Bitcoin spot ETFs is inevitable to correct it.

At the same time, Clayton’s opinion coincides with that of US Court of Appeals Circuit Judge Neomi Rao, who recently ordered the SEC to reevaluate Grayscale’s application to transform its Bitcoin Trust (GBTC) into an ETF of Bitcoin spot.

Next deadline

Despite the delays, the next major deadline for evaluating BTC spot applications is scheduled for October 7, at which time the commission is expected to provide updates on fund manager Global X’s proposed offering.

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