Co-founder and CEO of Circle, Jeremy Allaire, predicted that the recent wave of applications to launch Bitcoin-ETF would ultimately lead to approval by regulators.
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\”I think progress is achieved through more mature market structures that will support something like this. We have developed spot markets, well-regulated custody infrastructure, and market oversight,\” Allaire noted.
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In June, applications to launch the spot Bitcoin-ETH ETF were filed by asset managers Valkyrie, BlackRock, WisdomTree and Invesco.
According to the Circle chief, \”many of the previous concerns are being resolved,\” and, \”more likely,\” exchange-traded crypto funds will be approved for retail investors.
Analysts at CoinShares in June recorded a weekly inflow into digital-asset investment products of $199 million — a record since the summer of 2022.
Allaire added that \”digital store-of-value assets like Bitcoin remain a hedging instrument in the context of persistent inflation and currency weakness.\”
As of now, the U.S. Securities and Exchange Commission (SEC) has rejected nearly all ETF applications: an exception was made for ProShares and Valkyrie Investments, which are based on Bitcoin futures on the Chicago Mercantile Exchange. Grayscale filed a lawsuit against the regulator after the rejection.
The Wall Street Journal accused the head of the SEC Gary Gensler of a \”misleading\” approach to approving a spot ETF based on the leading cryptocurrency.
Analyst at ARK Invest Yassine Elmandjra stated that BlackRock’s filing for an exchange-traded Bitcoin fund could be a \”significant turning point on the path to institutional acceptance of digital gold.\”