A few days ago, some analysts believed that BlackRock’s Bitcoin ETF procedure had little chance of prospering. It seems that an external element involving the SEC has increased the possibilities of the outcome of the procedure initiated.
50% chance of success for BlackRock’s Bitcoin ETF application
The odds of approval for BlackRock’s Bitcoin ETF application have reportedly improved significantly at the latest news. This is what indicates a recent study by Eric Balchunasprincipal ETF analyst at Bloomberg.
The expert expects a 50% chance of success for the Bitcoin ETF procedure introduced by BlackRock with the regulator. In other words, the possibilities of seeing the SEC do an about-face from its usual position on ETFs are significant.
Recently, however, a similar estimate indicated the low success rate of the asset manager’s approach. So what has changed in the meantime? The answer to that question has to do with the lawsuit between the SEC and digital asset manager Grayscale Investments. Indeed, Grayscale’s chances of victory would have increased by about 70%.
This conclusion comes from Elliott Stein, litigation analyst at Bloomberg. “Grayscale has a 70% chance of winning its lawsuit against the SEC over the company’s bid to convert the Grayscale Bitcoin Trust (GBTC) into a Bitcoin ETF, we believe”did he declare.
For Eric Balchunas, this projection provides an obvious prospect for BlackRock’s Bitcoin ETF proceeding. The analyst finds it hard to see the SEC failing the file of the company, which is, moreover, a juggernaut in the financial sector.
Just to save face from a potential defeat inflicted by Grayscale, the regulator would approve BlackRock’s application. Ultimately, this remains a hypothesis which, if it materializes, would confirm the predictions of an explosion in the price of bitcoin. The asset is currently trading around $30,300.
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