Ex-BlackRock executives Steven Schoenfield and Martin Bednall anticipate the U.S. Securities and Exchange Commission's (SEC) approval of numerous Bitcoin exchange-traded funds (ETFs) within the next three to six months. Schoenfield, now CEO of MarketVector Indexes, sees this as a shorter timeline than his previous prediction and expects this could attract around $200 billion into Bitcoin investments.
The executives' outlook comes amid the SEC's shift in its scrutiny of spot Bitcoin ETF applications, and the legal victory of Grayscale, which potentially enables its Trust's transformation into an ETF. BlackRock (NYSE:BLK), among various finance firms, has submitted a spot Bitcoin ETF filing with the SEC.
AllianceBernstein (NYSE:AB) predicts that BlackRock's ETF approval could boost crypto asset management by a staggering $650 billion. This optimistic view is shared by four congressional leaders who have petitioned SEC Chair Gary Gensler for immediate approval of spot Bitcoin ETFs.
However, Bednall suggests that BlackRock's industry position could provide them an advantage in securing approval, a viewpoint that contrasts with Schoenfield's anticipation of collective approval to prevent market dominance. Despite these positive developments, the SEC continues to express concerns about potential fraud and manipulation linked to ETFs.
Bernstein's senior analyst Gautam Chhugani observes a noticeable shift in the SEC's attitude towards crypto ETFs, noting increased engagement and responsiveness. The potential transformation of Grayscale Bitcoin Trust into an ETF and BlackRock's impending competition are also underscored as significant factors in this evolving landscape.
The ex-BlackRock chiefs' predictions are supported by CoinShares, which also foresees that the sanction of spot Bitcoin ETFs could pull between $150-$200 billion into the market, signaling a positive trend for the industry.
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