Cantor Fitzgerald sees spot bitcoin ETF as 'most-important short-term catalyst'

Quick Take

  • Analysts at Cantor Fitzgerald are increasingly confident that the SEC will approve a spot bitcoin exchange-traded fund (ETF) due to the market surveillance procedures proposed by asset managers, according to a report by Bloomberg News. 

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."


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They described approval as the "most-important short-term catalyst."

The SEC has rejected several prior proposals, expressing concerns about the lack of information sharing among exchanges to prevent market manipulation. However, BlackRock, which submitted its proposal in June, has an agreement with Coinbase to detect and address market irregularities.

Bitcoin has surged in recent weeks around headlines tied to the potential approval of a spot ETF, with the cryptocurrency appreciating towards $35,000 earlier this month. 

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Frank Chaparro is Host of The Scoop podcast and Director of Special Projects. He also writes a biweekly newsletter. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. For inquiries or tips, email [email protected].