Coinbase is ‘Confident’ of Bitcoin Spot ETF Approval

Coinbase, the largest crypto trading platform in the United States, is very “confident” when it comes to the approval of a spot Bitcoin exchange-traded fund (ETF) in the country.

As per a report, the company’s legal head believes that the approval is almost certain with the Securities and Exchange Commission’s (SEC) defeat against digital asset investment firm Grayscale. 

Coinbase CLO on ETF Approval

In an interview with CNBC, Coinbase Chief Legal Officer Paul Grewal noted that the SEC failed to prevent Grayscale from converting its flagship product, the Grayscale Bitcoin Trust (GBTC), into a Bitcoin spot ETF after the court ruled in the firm’s favor. As a result, it is quite likely that the regulator will have to approve an ETF in the near future. 

Grewal is ‘Hopeful’

“I’m quite hopeful that these [ETF] applications will be granted, if only because they should be granted under the law,” Grewal said in an interview with CNBC’s Arjun Kharpal.

A court stated that the SEC had no reason to deny multiple Bitcoin spot ETF applications if it had approved a few BTC futures ETFs earlier. The panel of judges also noted that the rejection of Grayscale’s application “was arbitrary and capricious because the Commission failed to explain its different treatment of similar products.”

Coinbase Exec did not Give a Date

Interestingly, the Coinbase legal head did not reveal a date as to when a Bitcoin ETF approval is coming but did reveal that it could be sooner than expected. However, the ultimate decision remains on the SEC’s shoulders. 

Court of Appeals Ruled in Favor of Grayscale

“I think that the firms that have stepped forward with robust proposals for these products and services are among some of the biggest blue chips in financial services,” the Coinbase executive added. “So that, I think, suggests that we will see progress there in short order.”

The Coinbase executive noted that the Court of Appeals has made it clear that the SEC cannot reject Bitcoin ETF applications “arbitrarily.” As a result, Grewal believes that “we’re going to see the commission fulfill its responsibilities. I’m quite confident of that.”