According to the Chief Legal Officer of Coinbase, the SEC will soon approve a Bitcoin ETF.

 

Paul Grewal, the chief legal officer at Coinbase, predicts that the Securities and Exchange Commission (SEC) of the United States will soon authorize an exchange-traded fund (ETF) for spot Bitcoin (BTC).

Grewal recently voiced hope for the clearance of ETF applications in an interview with CNBC.

"I'm quite hopeful that these [ETF] applications will be granted, if only because they should be granted under the law." 

He emphasized the recent court decision that struck the SEC and declared that the agency lacked justification for rejecting Grayscale's request to have its GBTC Bitcoin fund converted into an ETF. 

Indicating a possible route for the establishment of a Bitcoin-related ETF in the future months, the SEC decided not to appeal that decision.

A Bitcoin ETF would provide investors with a means to gain exposure to Bitcoin without directly purchasing the digital asset from an exchange. 

This alternative investment method could be particularly attractive to retail investors seeking exposure to Bitcoin without owning the underlying asset.

Benefits of a Bitcoin ETF Approval for Coinbase

The acceptance of a Bitcoin ETF will be advantageous for Coinbase. 

The company's common stock is included in portfolios created to give investors exposure to cryptocurrencies because it is the largest cryptocurrency exchange in the United States.

"We are quite excited that there are a number of developments we think that are just around the corner, or underway even as we speak, that will bring back investor and consumer interest in crypto."

As previously said, cryptocurrency financial services company Matrixport forecast a significant Bitcoin rally in the event that a spot ETF is offered. 

Comparing this to precious metals exchange-traded funds (ETFs), which have a market size of approximately $120 billion and assuming that 10–20% of investors in precious metals ETFs think about diversifying into

"If Tether’s market cap increases by $24 billion, acting as a proxy for potential ETF inflows, Bitcoin’s price would rise to $42,000, representing a conservative estimate."

Furthermore, the business said that Bitcoin may increase to $56,000 with a higher inflow of $50 billion as a result of RIAs' proposal to allocate 1% of their assets to it.