Coinbase (NASDAQ:COIN)'s Chief Legal Officer, Paul Grewal has expressed optimism about the approval of their US Bitcoin spot Exchange Traded Fund (ETF) by the U.S. Securities and Exchange Commission (SEC). During a conversation with CNBC, Grewal forecasted a positive outcome, bolstered by recent developments in the cryptocurrency sector.
Grewal's optimism is reflected by Bloomberg ETF analysts Eric Balchunas and James Seyffart, who have recently increased their approval chances estimate to 90%. This anticipation is fueled by the SEC's current legal strategy, as evidenced in its recent encounter with Grayscale. Notably, the SEC did not contest a court ruling that supported Grayscale's plan to transform its Bitcoin Trust (GBTC) into a physically-backed ETF, thereby enhancing Grayscale's prospects.
Moreover, Grewal highlighted the U.S. Court of Appeals ruling that dismissed the SEC's unjust denial of ETF applications similar to Grayscale's GBTC Bitcoin fund conversion proposal. He emphasized this court failure and the missed appeal deadline by the SEC as potential catalysts for approvals of Bitcoin-related ETFs.
According to InvestingPro data, Coinbase has a market cap of $17.71 billion and has experienced a significant price uptick over the last six months, with a 6-month price total return of 26.46%.
Industry giants such as BlackRock (NYSE:BLK), Fidelity, and Invesco are also in the race for Bitcoin ETF approvals. Grewal suggested that the stature and credibility of these firms could play a decisive role in the approval process. He further predicted operational ETFs in the near future, driven by developments reigniting investor and consumer interest in cryptocurrency.
Coinbase's stock price movements have been quite volatile, as noted by InvestingPro Tips. This is reflected in the company's 3-month price total return of -25.95%, despite a year-to-date price total return of 110.96%.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.