The much-anticipated spot bitcoin exchange-traded fund is on the verge of becoming a reality, according to analysts at the financial services firm Cantor Fitzgerald.
As reported by Bloomberg News, the firm — which offers prime brokerage and investment banking services — is "increasingly confident" that the slate of applications from asset managers to launch a spot ETF for bitcoin will be granted approval by the SEC.
The agency, which has been reluctant to approve such a product because of the fear of manipulation on off-shore spot platforms, could approve new applicants because of the market surveillance procedures they have proposed.
"A comprehensive surveillance-sharing agreement with a regulated market of significant size" would mollify regulators, the firm's Josh Siegler and Will Carlson noted.
The analysts believe a spot ETF approval would be a significant short-term catalyst for bitcoin's price, adding approval would be "a bedrock moment for Bitcoin’s long-term adoption and legitimization."
They described approval as the "most-important short-term catalyst."
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