Marathon Digital CEO Fred Thiel remains optimistic about the potential approval of a spot Bitcoin (BTC) Exchange Traded Fund (ETF) in the United States by the Securities and Exchange Commission (SEC).
The SEC has yet to approve a spot Bitcoin ETF due to concerns about market manipulation. However, recent developments have reignited the debate on when the Commission might grant approval.
Thiel is among those who believe approval is on the horizon, citing the significant interest shown by institutional investors in the past two months. He stated, “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.”
Thiel also pointed out that the SEC may approve a spot Ethereum ETF, with a report predicting approval as early as October. He believes that if the SEC approves an Ethereum ETF, it will increase the likelihood of approving a spot Bitcoin ETF.
Unlike Ethereum, Bitcoin has not been flagged by the SEC as a security, making it more likely to comply with fair regulatory standards.
Thiel expressed his bullishness on the matter, stating that the odds of SEC approval are better than fifty-fifty.
The CEO noted that the recent enthusiasm surrounding a Bitcoin ETF stems from the renewed interest of institutional investors in the market. Notable institutions such as BlackRock and Fidelity Digital have submitted over six applications for a spot BTC ETF, raising hopes among digital asset enthusiasts that approval is near. Thiel stated, “I think what is certain is that if one gets approved, a number of them will get approved. That doesn’t mean all of them will get approved, but a number of them will get approved. I don’t think the SEC can play favorites and choose just one.”
In addition to the ETF applications, the introduction of PayPal’s stablecoin PYUSD and other innovations in the sector indicate growing adoption in the coming years.
The anticipation of a spot BTC ETF stems from its potential impact on the market. The application influx led by BlackRock has driven the price of Bitcoin above $31,000, sparking hope for a potential bull run. A study by Bernstein suggests that the approval of a spot BTC ETF will bring fresh liquidity, driving up market capitalization and transaction volumes across decentralized finance (DeFi) applications.
Thiel also mentioned that the SEC might require more positive market outcomes to alleviate pressure. He highlighted the need for the Commission to settle its pending lawsuit with Coinbase based on the outcome of the case with Ripple.
