During an interview with CNBC, Grewal expressed his hope that the ETF applications will be granted based on legal grounds. He referred to a recent court ruling that favored Grayscale’s bid to convert its GBTC Bitcoin fund into an ETF, which the SEC chose not to appeal.
Grewal believes that the SEC, as the ultimate decision-maker, is likely to approve a Bitcoin ETF soon considering the progress made by prominent financial services firms in providing strong proposals for such products.
A Bitcoin ETF would offer investors a way 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.
Coinbase’s Potential Benefits from BTC ETF Approval
Coinbase, as the largest cryptocurrency exchange in the United States, stands to benefit from the approval of a Bitcoin ETF. The company’s common stock is included in portfolios designed to provide investors with crypto exposure.
Matrixport, a crypto financial services platform, has predicted a potential Bitcoin rally if a spot ETF is introduced. Assuming that a percentage of precious metal ETF investors diversify into a Bitcoin ETF as a hedge against inflation, an inflow of $12 to $24 billion into the Bitcoin ETF could be witnessed, leading to a rise in Bitcoin’s price.
Furthermore, if a recommended 1% allocation by RIAs results in a larger influx of $50 billion, Bitcoin has the potential to rally up to $56,000.
