SEC Closer to Approving Bitcoin ETF? Marathon CEO Says Chances Have Crossed 50%

Fred Thiel, the CEO of Marathon Digital, is showing increasing positivity about the potential approval of a Bitcoin Exchange Traded Fund (ETF) by the United States Securities and Exchange Commission (SEC).

Thiel’s confidence stems from the recent influx of institutional investors into the cryptocurrency domain. Over the last couple of months, he believes the chances of the SEC granting approval for a Bitcoin ETF have crossed the 50% mark. He further highlighted that the approval of an Ethereum Futures ETF by the regulatory agency could enhance the likelihood of this decision.

Bitcoin Spot ETF Approval Gains Momentum

In an interview, Fred Thiel expressed growing optimism regarding the SEC’s stance on Bitcoin Spot ETF approval. Thiel has indicated that the odds of the regulatory body giving the green light to a Bitcoin Spot ETF are now better than a coin toss. 

“I don’t know about giving out odds on something like this because the fact that Larry Fink and BlackRock are even trying to do this would say that they have a pretty high degree of certainty that they’ll get it through,”

Several Pending Applications

Currently, there are around six applications awaiting approval for the launch of a spot Bitcoin ETF. Unlike existing futures contract-based ETFs, a spot Bitcoin ETF would directly track the price of Bitcoin (BTC). This would allow investors to gain exposure to Bitcoin without the need to purchase and store it themselves.

Several prominent firms are vying to offer a Bitcoin e­xchange-traded fund (ETF), including BlackRock, the world’s largest asset manager with over $9 trillion unde­r management as of Q2 2023. Other notable­ contenders include Wisdom Tre­e, VanEck, Valkyrie, and Fidelity.

Ethereum ETF and Bitcoin’s Fate

Thiel’s perspective gains additional weight from his observation that the potential approval of an Ethereum Futures ETF could play a pivotal role in tilting the scales in favor of Bitcoin’s ETF approval. This interconnectedness reflects the SEC’s acknowledgment of the expanding reach of digital assets, potentially setting a precedent for favorable regulatory decisions.

Moreover, Bitcoin has an advantage over Ethereum in terms of regulatory scrutiny, as it has not been classified as a security by the SEC. This advantageous regulatory position could contribute to a smoother approval process for a Bitcoin ETF.

Read More: Ethereum Futures ETFs: What Investors Need to Know

Thiel also explained that his views rest on the fact the SEC may approve a spot Ethereum ETF with a report predicting an approval around October within several applications filed. 

Understanding the Regulatory Impact

Thiel also e­mphasized the impact of regulations on marke­t outcomes and highlighted their inte­rconnection. He pointed out that positive advancements, such as resolving the ongoing lawsuit involving Coinbase, may be necessary to mitigate any regulatory pressure­s. The resolution of the Ripple­ lawsuit could set a precede­nt for the decision-making process of the Securities and Exchange Commission (SEC).

Discussions surrounding the approval of spot BTC ETFs are­ ongoing, and the market is anxiously awaiting the ve­rdict from the SEC.