Amidst vigilant scrutiny of developments regarding a spot Bitcoin Exchange-Traded Fund (ETF), global blockchain luminary Paul Brody, spearheading Ernst & Young’s blockchain division, underscores the burgeoning desire for Bitcoin amongst institutional entities.
The cryptocurrency Bitcoin, currently valued at $34,105, has garnered considerable attention from institutional investors. Nonetheless, it is expected to see a demand surge if a spot BTC ETF is approved, as explained by an EY representative.
Additionally, Paul Brody, EY’s global leader in blockchain technology, opines that Bitcoin is encountering a notable pent-up interest from institutional quarters. This is primarily attributed to the protracted reluctance of United States regulatory bodies in ratifying a spot Bitcoin ETF.
In an episode of CNBC’s “Crypto Decrypted” on October 23, Brody elaborated on the potential for cryptocurrency integration. He stressed that trillions of institutional dollars are poised to flow into Bitcoin once a Bitcoin ETF is approved.
He emphasizes, “Nevertheless, no institutional investment funds can engage with this asset class unless it gains ETF status or receives some form of official regulatory endorsement.”
Brody, a blockchain authority within EY, further articulates;
“If you look at people who are buying Bitcoin, they are buying it as an asset. They are not buying it as a payment tool. Those who are buying Ethereum, are buying it as a computing platform for business transactions and DeFi [decentralized finance] services.”
EY Predicts Bitcoin ETF Prospects and Regulatory Developments
Paul Brody’s remarks take place against the backdrop of global stakeholders closely monitoring the regulatory path of cryptocurrencies. They are particularly attentive to the guidance provided by the United States Securities and Exchange Commission (SEC).
Furthermore, it is notable that the SEC has, hitherto, withheld approval for any spot Bitcoin ETF. Grayscale Investments, ARK Investment, BlackRock, and Fidelity have all requested approval from the SEC for various Bitcoin ETF options. They are currently in a state of anticipation, awaiting a regulatory decision.
In August 2023, Grayscale succeeded in an SEC legal dispute related to a spot Bitcoin ETF review. Recently, they have submitted an S-3 registration declaration to the SEC. This action is in pursuit of listing the Grayscale Bitcoin Trust on the New York Stock Exchange Arca.
Eric Balchunas, an ETF analyst at Bloomberg, sees the alterations to the spot Bitcoin ETF by ARK Invest and 21Shares in mid-October 2023 as a positive move. It suggests potential progress.
He suggests that these modifications could signal a greater likelihood of approval. Balchunas believes that the SEC’s inquiries to ETF issuers may have prompted these alterations.