Analysts are predicting that the U.S. Securities and Exchange Commission (SEC) may take a look at potentially approving a spot Bitcoin exchange-traded fund (ETF) sometime in the fourth quarter of 2021. The estimate comes amid a flurry of recent regulatory activity surrounding the cryptocurrency space following the public hearings hosted by the commission earlier this year.
Analysts believe the SEC may be more amenable to approving a spot Bitcoin ETF given the recent comments from SEC Chair Gary Gensler who appears to be relatively open to a potential Bitcoin ETF approval. Additionally, the agency also recently highlighted Bitcoin’s emerging investor base, potentially lending more credibility to the suggestion that a Bitcoin ETF can be approved.
It is still unclear when the SEC would be able to issue a decision on a potential spot Bitcoin ETF, but analysts are optimistic that the new window of potential approval could be in the third or fourth quarters of 2021. Despite the optimism, the SEC’s review is also likely to be lengthy and rigorous, as regulators are likely to impose a strict set of conditions on any potential Bitcoin ETF approval.