Fred Thiel, the CEO of Marathon Digital, is expressing a growing sense of optimism regarding the possibility of the United States Securities and Exchange Commission (SEC) approving a spot Bitcoin (BTC) Exchange Traded Fund (ETF).
Over the past couple of months, Thiel believes the odds of approval are above 50/50 due to the entry of institutional investors into the space. Additionally, Thiel noted that an Ethereum Futures ETF approval by the agency would increase the odds.
Positive Shift: SEC’s Stance on Bitcoin Spot ETF Approval Gains Momentum
In an interview, Fred Thiel expressed growing optimism regarding the SEC’s stance on Bitcoin Spot ETF approval. Thiel has indicated that the odds of the regulatory body giving the green light to a Bitcoin Spot ETF are now better than a coin toss.
“I don’t know about giving out odds on something like this because the fact that Larry Fink and BlackRock are even trying to do this would say that they have a pretty high degree of certainty that they’ll get it through,”
Currently, there are around six applications awaiting approval for the launch of a spot Bitcoin ETF. Unlike existing futures contract-based ETFs, a spot Bitcoin ETF would directly track the price of Bitcoin (BTC). This would allow investors to gain exposure to Bitcoin without the need to purchase and store it themselves.
Several prominent firms are vying to offer a Bitcoin exchange-traded fund (ETF), including BlackRock, the world’s largest asset manager with over $9 trillion under management as of Q2 2023. Other notable contenders include Wisdom Tree, VanEck, Valkyrie, and Fidelity.
Thiel’s Insights Highlight Ethereum Futures ETF’s Influence on Bitcoin’s ETF Approval Prospects
Thiel’s perspective gains additional weight from his observation that the potential approval of an Ethereum Futures ETF could play a pivotal role in tilting the scales in favor of Bitcoin’s ETF approval. This interconnectedness reflects the SEC’s acknowledgment of the expanding reach of digital assets, potentially setting a precedent for favorable regulatory decisions.
Moreover, Bitcoin has an advantage over Ethereum in terms of regulatory scrutiny, as it has not been classified as a security by the SEC. This advantageous regulatory position could contribute to a smoother approval process for a Bitcoin ETF.
Thiel also explained that his views rest on the fact the SEC may approve a spot Ethereum ETF with a report predicting an approval around October within several applications filed.
Positive Outcome Could Favor Spot BTC ETF Approval
Thiel also emphasized the impact of regulations on market outcomes and highlighted their interconnection. He pointed out that positive advancements, such as resolving the ongoing lawsuit involving Coinbase, may be necessary to mitigate any regulatory pressures. The resolution of the Ripple lawsuit could set a precedent for the decision-making process of the Securities and Exchange Commission (SEC).
Discussions surrounding the approval of spot BTC ETFs are ongoing, and the market is anxiously awaiting the verdict from the SEC.
