Bitcoin Spot ETF Approval Has Chance to Spark Buying Rally: EY Executive

Rising demand for bitcoin among institutional investors is set to reach new highs, especially if bitcoin exchange-traded fund (ETF) space is approved in the coming months, according to an Ernst & Young executive.

In a special feature on CNBC's StreetSigns, Ernst and Young CEO Paul Brody explained that institutional investors are now setting their sights on the world's largest cryptocurrency by market capitalization.

According to Brody, the US Securities and Exchange Commission's (SEC) reluctance to approve ETFs over the past two years has led to a decline in demand for Bitcoin.

Putting the demand into context, Brody noted that the massive $200 trillion in assets under management (AUM) of the “Big Four” asset managers are waiting on the sidelines for ETF approval from the relevant authorities.

For now, it's not possible to enter the crypto space until EFF grants prior approval.

Many investors don't buy bitcoin because of its decentralized value transfer capabilities, he continued. This means that in the coming months, many mainstream investors will warm to the idea of ​​gaining exposure to Bitcoin through ETFs.

Brodie's comments highlight a growing number of moves in the asset management space over the past two months.

A number of top asset managers such as BlackRock, VanEck and Grayscale have shown strong interest in offering institutionally backed Bitcoin trading services through ETFs.

However, the stumbling block is the SEC, which continues to drag its feet, citing several challenges that the Bitcoin spot ETF may not be of interest to investors in general.

The Gary Gensler-led agency has seen it refuse to accept requests for a spot ETF over the past two years due to its inability to accurately track Bitcoin's price and concerns about market manipulation. But this reluctance has not weakened the institutional interest one bit.

GreyScale recently refiled an amended Form S-3 registration statement with the SEC.

In it, the top crypto asset management firm said it will list its GrayScale Bitcoin Trust (GBTC) fund on New York Stock Exchange Arca after being granted regulatory approval.

Spot Bitcoin ETF soon

Paul Brody isn't the only one seeing Bitcoin rally as a result of interest in the popular crypto asset.

Jeff Seifert and Eric Balchunas — two prominent Bloomberg ETF analysts — also pay close attention to the Bitcoin Spot ETF saga.

As he mentioned in a recent Tweet, the Bitcoin ETF space is just around the corner. Providing more details, both analysts estimate a 90% chance of approval. If their prediction holds, it could pave the way for the launch of a Bitcoin spot ETF in the next 80 days.

This 80-day ultimatum He approved it on January 10, 2023, according to Seifert.

If the Bitcoin spot ETF is approved, the leading cryptocurrency could reach higher levels in anticipation of strong demand.

So far, Bitcoin has risen above $30,000 on strong pressure towards the $31,000 price range.

This is strongly related to the growing belief that a bullish Bitcoin ETF is on the horizon.