Coinbase CLO Optimistic About SEC Approval of Bitcoin ETF

Paul Grewal, the Chief Legal Officer (CLO) of Coinbase Global Inc., has expressed optimism and anticipation regarding the United States Securities and Exchange Commission’s (SEC) approval of a spot Bitcoin (BTC) Exchange Traded Fund (ETF).

Grewal is sanguine that the regulator will fulfill its obligations by approving the highly desired investment product.

During an interview with CNBC, Coinbase’s chief legal officer emphasized that the American cryptocurrency exchange is confident that the U.S. regulator will approve the applications to list the new spot BTC ETF offering.

“I’m quite hopeful that these [ETF] applications will be granted, if only because they should be granted under the law,” Grewal said.

Grewal made no mention of when or in what order he anticipates the sanction to be granted. His opinion supports the position of two Bloomberg ETF analysts who recently outlined the likelihood that the SEC will approve a spot Bitcoin ETF.

Eric Balchunas and James Seyffart increased the likelihood of spot Bitcoin ETF approval to 90% from 75% in a previous forecast.

The progression of the value designated as the likelihood of approval reflects the analysts’ level of confidence in the regulator’s decision.

In addition, the SEC’s recent action in its litigation against Grayscale suggests that a bitcoin-related ETF may be introduced within the next few months.

After a judge ruled that the SEC had no basis for rejecting Grayscale’s proposal to convert its Bitcoin Trust into a physically-backed ETF, it was widely anticipated that the regulator would file an appeal, similar to what it did in the Ripple Labs and XRP case.

However, in a surprising turn of events, the regulator decided not to appeal the court’s decision. This increases the likelihood that Grayscale will convert GBTC to an ETF.

BlackRock, Fidelity, and Invesco are among the industry giants pursuing approval to list the Bitcoin ETF product.

Coinbase’s Chief Legal Officer (CLO) believes that the status and reputation of the majority of applicants will play a role in gaining approval this time, in addition to the small victories already achieved.

Grewal added, “I believe that the firms that have come forward with robust proposals for these products and services are among the largest blue chips in the financial services industry.”