The eagerly awaited approval of a bitcoin exchange-traded fund (ETF) that deals with spot trading is nearing realization, as per insights from financial services firm Cantor Fitzgerald.
As reported by Bloomberg News, Cantor Fitzgerald, a firm known for providing prime brokerage and investment banking services, is increasingly optimistic about the likelihood of the SEC granting approval for a slew of applications from asset managers aiming to launch a spot bitcoin ETF.
The SEC has been somewhat hesitant in the past to approve such products due to concerns about potential market manipulation on offshore spot platforms. However, the tide may be turning as new applicants have put forward market surveillance procedures that could appease regulatory concerns.
Josh Siegler and Will Carlson from Cantor Fitzgerald pointed out that a “comprehensive surveillance-sharing agreement with a regulated market of significant size” could go a long way in reassuring regulators.
In the eyes of these analysts, the approval of a spot bitcoin ETF would serve as a pivotal short-term catalyst for the price of bitcoin, and it would mark a significant moment in the cryptocurrency’s journey toward broader adoption and legitimacy.
Cantor Fitzgerald’s analysts see this approval as the most crucial short-term factor for Bitcoin.
The SEC has previously turned down numerous proposals, citing concerns about a lack of information sharing among exchanges to prevent market manipulation. However, BlackRock, which submitted its proposal in June, has made strides in this regard, forming an agreement with Coinbase to identify and rectify market irregularities.
In recent weeks, bitcoin’s price has experienced a surge, largely driven by the anticipation of the approval of a spot ETF, with the cryptocurrency reaching levels near $35,000 earlier this month.