According to Martin Bednall, a former BlackRock executive and now CEO of Jacobi Asset Management, the U.S. Securities and Exchange Commission (SEC) is likely to approve all spot bitcoin exchange-traded fund (ETF) applications at once. This strategic move, as explained by Bednall, aims to avoid providing any particular entity with a "first mover advantage". Speaking at the CCData Digital Asset Summit, Bednall, with over 13 years of experience at BlackRock, emphasized that such approvals could bring significant positivity to crypto markets.
Steven Schoenfeld, CEO at VanEck-owned MarketVector Indexes, echoed this sentiment, expressing that the SEC might indeed approve all bitcoin ETF applications simultaneously. He suggested that these approvals could happen sooner than previously anticipated, potentially within the next "3 to 6 months." Schoenfeld's revised timeline is attributed to recent SEC actions. The SEC opted not to entirely reject ETF applications but instead sought comments. Additionally, a recent legal development involving Grayscale suggests that the SEC might allow the conversion of Grayscale bitcoin trust into a spot bitcoin ETF.
Moreover, insights into the involvement of BlackRock, the world's largest asset manager, shed light on their close relationship with regulators globally, heightening the expectation of their successful spot bitcoin ETF application. Experts predict that once approved, spot bitcoin ETFs could bring about a substantial inflow of approximately "$150 to $200 billion" into bitcoin investment products over three years. This would effectively "double or triple the amount of assets under management (AUM) in current bitcoin products," providing a significant boost to the crypto market.
Lab51 recognizes the potential impact of Bitcoin ETFs on the market and believes in the importance of fostering an environment that ensures fairness and equal opportunities for all stakeholders.
As the anticipation for their approval grows, Lab51 acknowledges the insights provided by experts like Martin Bednall and Steven Schoenfeld. We believe this strategic approach to prevent any single entity from gaining a "first mover advantage" aligns with the community efforts that is often seen in Web3 and within the crypto market.
Lab51 remains dedicated to bringing innovation to the forefront and contributing to the ongoing discourse around cryptocurrency investments. Thus, we aim to provide valuable insights and promote a balanced and inclusive crypto market for all investors.