A senior analyst at global asset management fund Bernstein says multiple altcoin exchange-traded funds (ETFs) are likely to emerge if a spot Bitcoin (BTC) ETF is approved.
Gautam Chhugani, who also serves as managing director of Global Digital Assets at Bernstein, say Grayscale’s legal victory over the U.S. Securities and Exchange Commission (SEC) last week has established “unambiguous principles” that regulators should use when considering spot crypto ETF applications.
“We suspect that the opportunities for crypto ETFs will not just stop with Bitcoin, but will expand to multiple crypto assets…”
A federal judge ruled last week that the SEC must reconsider Grayscale’s application to convert the Grayscale Bitcoin Trust into a spot Bitcoin ETF. Grayscale initially sued the SEC in June 2022, alleging that the regulatory agency’s rejection of their ETF application was discriminatory. The judge said the SEC should reconsider the company’s filing to avoid arbitrariness and inconsistency.
Later that week, the SEC said it was delaying its decisions on a slew of spot-based Bitcoin ETF filings until October.
Chhugani says recent fundamental developments in the crypto space have made him optimistic about the industry in general.
“Strong court results (Ripple and Grayscale in two months), improved ETF opportunities, and progressive institutional interest contrast with the retail-led crypto cycles of the past. This is a cycle that is slower to start, but built on much stronger fundamental grounds of regulatory clarity and more strategic long-term players entering the space.”
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