Paul Grewal, the chief legal officer at Coinbase, is certain that the Bitcoin exchange-traded fund (ETF) will soon receive approval from the U.S. Securities and Exchange Commission (SEC).
Grewal told CNBC that he believes the SEC would approve a U.S. Bitcoin ETF “in short order.” Grewal’s claim follows a significant court ruling that determined the SEC lacked justification for rejecting Grayscale Asset Management’s proposal to convert its GBTC Bitcoin (BTC) fund into an exchange-traded fund.
Additionally, the regulator decided against filing an appeal of the court’s decision, which led to industry rumors that permits for Bitcoin ETFs were imminent.
Grewal is still hopeful that more Bitcoin ETFs will be approved despite current legal issues involving Grayscale’s parent business, Digital Currency Group, and the Gemini cryptocurrency exchange.
The Coinbase attorney clarified that he anticipates the agency will have to fulfill its legal duties following the court’s ruling. However, he did not provide a particular timetable in which he anticipates the permissions to be issued. Paul Grewal stated:
“I think that, after the U.S. Court of Appeals made clear that the SEC could not reject these applications on an arbitrary or capricious basis, we’re going to see the commission fulfill its responsibilities. I’m quite confident of that.”
This approach may appeal to retail investors, particularly those who want to gain exposure to Bitcoin without buying the cryptocurrency directly from an exchange.
Businesses like Coinbase, the biggest cryptocurrency exchange in the United States, are anticipated to gain a lot from any Bitcoin ETF that is ultimately approved.
In the interview, Grewal discussed his thoughts on the ongoing trial of former FTX CEO Sam Bankman-Fried, who is accused of planning to swindle FTX investors.
The insider of Coinbase said he was “encouraged” and “optimistic” that criminals were being held accountable through such trials and stringent laws.
