Marathon Digital CEO Expresses Optimism For Spot BTC ETF Approval, Fixes Odds Above 50:50

Source: Pixabay

Marathon Digital CEO Fred Thiel remains positive over the potential approval of a spot Bitcoin (BTC) Exchange Traded Fund (ETF) in the United States by the Securities and Exchange Commission (SEC). 

The SEC has not yet approved a spot Bitcoin ETF as it continues to cite market manipulation concerns although recent developments have sparked the debate on the timeline for the Commission’s approval.

Among many enthusiasts who believe that an approval is imminent, Thiel backs the line of thought because of the huge institutional investors that has shown significant interest in the past two months.

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.” 

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. 

To him, if the SEC approves a spot ETF for Ethereum, it improves the chances for Bitcoin. “…which, if they do, just increases the odds that they would potentially approve a spot Bitcoin ETF.”

In addition, unlike Ethereum, Bitcoin has not been flagged by the SEC for being a security so there is a possibility of fair regulatory compliance on the asset. 

He projected on the side of approval by placing the odds above 50% like most digital asset executives and bulls.

“I’m fairly bullish personally. I think that the odds that the SEC will approve it are better than fifty-fifty.”

Institutional investors will swing the balance

The Marathon Digital CEO notes that the current enthusiasm comes after the renewed interest of institutional investors in the market. 

There are more than six applications for a spot BTC ETF among which notable institutions like BlackRock, Fidelity Digital, etc raise hopes of most digital asset enthusiasts that the first approval is imminent. 

I think what is certain is that if one gets approved, a number of them will get approved. That doesn’t mean all of them will get approved, but a number of them will get approved. I don’t think the SEC can play favorites and choose just one.”

Aside from spot ETF applications, PayPal’s recent stablecoin, PYUSD, and other innovations around the sector are a huge pointer for surging adoption in the coming years.

A key reason for the anticipation of a spot BTC ETF is its huge effects on the market. The application spree led by BlackRock skyrocketed the price of Bitcoin above $31,000 igniting bulls on a potential bull run. 

A study by Bernstein suggested that the approval of a spot BTC ETF will open up a new cycle in the market with fresh liquidity driving up the market cap and transaction volumes across decentralized finance (DeFi) applications. 

Finally, Thiel stated that the SEC may need more positive outcomes from the market to prevent it from being under more pressure. He explained that the Commission needs to settle the pending lawsuit with Coinbase based on the outcome of the case with Ripple.

This news is republished from another source. You can check the original article here.

Be the first to comment

Leave a Reply

Your email address will not be published.