The potential of a spot Bitcoin ETF (Exchange-Traded Fund) has been surrounded by frenzied discourse and another jolt was delivered to it by Hester Peirce.
The Securities and Exchange Commissioner said in a recent interview that the securities regulator should not stand in the way of approving the ETF.
The statement
On Tuesday, Hester Peirce gave an interview in which she said that she had been transparent about her views regarding a Bitcoin ETF.
She stated that in her opinion, there is no reason for the SEC to not give approval for a spot Bitcoin exchange-traded fund (ETF).
Data from CoinGecko showed that a clip of the SEC Commissioner discussing the spot Bitcoin ETF had been re-circulating on X a day after the interview was aired.
This prompted Bitcoin to record a gain of 3% in its price, which pushed up the leading meme token to a value of $37,718.
In recent weeks, Bitcoin has reached yearly highs primarily because of rumors about the likelihood of the SEC giving approval for a spot Bitcoin ETF soon.
A Bitcoin ETF is an investment product that would enable investors to get exposure to Bitcoin without actually having to purchase the asset.
The events
Last month, JP Morgan had predicted that a mainstream financial product backed by Bitcoin could get approval as early as Christmas.
However, last week, the SEC decided that they would take decisions on the various Bitcoin ETF applications in the coming year.
For the last decade, crypto-native asset managers have been trying to get the SEC to approve a spot Bitcoin ETF, but they have not had any luck.
Every application has been rejected by the regulatory body so far citing the possibility of market manipulation through crypto as the main reason for doing so.
The change
However, things changed with the entry of the world’s largest asset manager, BlackRock, in the picture. Last June, it also submitted an application for a Bitcoin ETF.
Since then, there have been subtle indications that the Wall Street titan would be able to get its way. Market analysts have said that interest in crypto from Wall Street would surge through a Bitcoin ETF.
Previously, some crypto analysts have predicted that the launch of the investment product could give a boost of $1 trillion for Bitcoin and other digital assets.
Peirce is one of the five SEC commissioners who will make a decision regarding the pending ETF applications.
But, it should be noted that she is part of the Republican minority on the SEC and has butted heads with Gary Gensler, the Democratic Chairman of the regulatory body when it comes to crypto regulation.
Most of the recent actions that the SEC has taken against crypto companies have been denounced by Peirce.
In addition, she has also expressed her enthusiasm for a spot Bitcoin ETF repeatedly since 2018. Therefore, her statement may not highlight the chances of its approval accurately.
Nonetheless, it shows that even a rumor regarding this investment product significantly impacts the crypto market.