Market analysts are currently evaluating the likelihood that the US Securities and Exchange Commission (SEC) will approve the venture following the recent frenzy of Bitcoin spot exchange-traded fund (ETF) filings.The top analyst for Bloomberg thinks that BlackRock, a company that manages assets, has a 50% probability of receiving what it wants.
Eric Balchunas, senior market analyst at Bloomberg, stated that BlackRock has an equal probability of having its Bitcoin spot ETF file approved by the US SEC in a tweet on June 27.Balchunas ascribed the likelihood to knowledge gained about Grayscale, another well-known asset management company, from his colleague.
Elliot Stein, a senior litigation analyst for Bloomberg Intelligence, claimed that Grayscale had a 70% success rate in its legal battle with the SEC for the authority to convert its Grayscale Bitcoin Trust (GBTC) to an ETF.Following oral arguments before a panel of three judges earlier this year, Stein said that the chances considerably increased from 40% to 70%.These federal judges appeared to favor Grayscale’s position as events developed, increasing the likelihood of a favorable decision.The SEC could be preparing for a significant loss with such a high figure, but the leading agency is not going down without a fight.
Stein suggested that, out of spite, the SEC would eventually agree to a Bitcoin spot ETF around the time a decision on its lawsuit against Grayscale will be rendered.The regulatory body, headed by Gary Gensler, would therefore prefer to work with a “trusted” and reputable asset management company like BlackRock.Due to this, the $10 trillion corporation has a good chance of achieving its goals in the upcoming weeks.
Even though its CEO Larry Fink has previously made disparaging remarks about the digital asset market, BlackRock has been one of the companies paying close attention to it. Fink’s perspective has changed recently, though.He stated that it appears that many individuals are interested in Bitcoin.He said that 3,000 hits for monetary policy and 600,000 for Bitcoin were recorded on the BlackRock website.
A big surge occurred in the last week, with Bitcoin surpassing the $30,000 mark, as a result of this abrupt shift in the narrative and the influx of institutional investors into the cryptocurrency industry.