By Michael Scott
Circle’s chief executive Jeremy Allaire waded into the efforts undertaken to secure approval from the US Securities and Exchange Commission (SEC) for Bitcoin spot (exchange-traded fund) ETF. He expressed confidence in the progress portrayed by various stakeholders in addressing regulatory hindrances that impeded the approval of Bitcoin ETFs in the country.
Executive Anticipate Regulatory Approval for Bitcoin ETF
The co-founder and serving chief executive of finance tech company Circle is optimistic that the recent series of applications for Bitcoin ETF will translate into a successful regulatory approval. He believes stakeholders are addressing the concerns that the US financial watchdogs pointed out in the past to deny the ETFs applications. The solutions to the concerns highlighted by the regulatory agencies lean towards greenlighting the ETF applications.
Allaire reiterated in an interview hosted by Bloomberg on Tuesday, June 27, that remarkable progress characterizes the current applications with mature market structures established to support the Bitcoin ETFs. He observed that a review of the applications reveals the presence of mature spot markets blended with reliable market surveillance and regulated custody infrastructure.
The Circle’s boss is optimistic about ETF success, given his experience in steering the development and issuance of USD Coin (USDC) to rank second largest by total market capitalization of $28.19 billion, as per Coinmarketcap.
Allaire considers the evidence of solutions to most past concerns as the ground to believe regulators would likely approve the Bitcoin ETFs. The approval would make Bitcoin ETFs available for general investor access.
Is it Time for Regulatory Agencies to Facilitate US Embrace Bitcoin ETF
Allaire identifies an ETF as an investment fund trading on the stock exchange while allowing interested investors to obtain exposure to a particular asset or asset group. The Circle’s chief coincides that the Bitcoin ETF will facilitate investors in trading shares representing Bitcoin ownership without exercising direct holding of the top-ranked crypto asset.
The Circle’s head observes that Bitcoin ETFs have become an attractive agenda in investment debates and speculation amongst the crypto community for an extended period. Allaire acknowledges that interest in Bitcoin ETFs has attracted global attention. He notes that Bitcoin ETFs are available in various jurisdictions, including Brazil, Canada, Dubai, and Hong Kong.
Allaire decries that the United States is lagging in leveraging the derivative tied to the crypto assets despite the prominent role and input in global investment. He attributes the delay to the failure to convince the Gary Genseler-led SEC that the Bitcoin ETF constitutes a reasonable investment alternative. Often, the securities watchdog cites the need to protect investors from the inherent vulnerability to fraud and manipulative practices.
Allaire admits that Bitcoin’s recent surge in the wake of persistent hawkish monetary policies adopted by the Fed and weakening fiat currencies are convincing points for Bitcoin as a digital store of value. Its recent rally portrays Bitcoin as a reliable hedge instrument as investors seek refuge from predatory inflation.
BlackRock Triggers Wave of Bitcoin Spot ETF
Allaire acknowledges that the recent streams of Spot Bitcoin ETF applications portray the derivative as the holy grail desired by the crypto community. The Circle’s executive indicates that the wave of applications reignites the 2013 quest for Bitcoin ETF. Allaire observes that the SEC is dealing with a new wave of Bitcoin ETF applications led by Wall Street BlackRock. Its application trigged fresh filings submitted by Wisdom Tree, Galaxy Digital, Valkyrie Investments, and Invesco.
The wave of applications for Bitcoin spot ETFs coincides with increased institutional interest in adopting crypto-based investments highlighted by Coinshares. The report by the digital asset management firm tracked the crypto investment realized to date by the previous week as exceeding $37 billion.
The report by CoinShares indicated that the total inflows realized in all crypto-based investments hit $199 million, with Bitcoin accounting for $187 million.
Further scrutiny of the previous week’s investment activity reveals that ProShares’ Bitcoin Strategy ETF (BITO), which monitors Bitcoin pricing through strategic investment in CME Bitcoin Futures, attracted the largest inflows. It realized $60.4 million to lead in the US, with its assets under management exceeding $1 billion.