Coinbase's (NASDAQ: COIN) Chief Legal Officer, Paul Grewal, on Friday expressed optimism about the Securities and Exchange Commission (SEC) approving a U.S. Bitcoin exchange-traded fund (ETF), saying that the financial watchdog will "fulfill its responsibilities."
"I'm quite hopeful that these [ETF] applications will be granted, if only because they should be granted under the law," he said in an interview with CNBC.
Notably, this comes at a time when the crypto realm is gaining significant attention, with events like Benzinga's Future of Digital Assets conference on Nov. 14 providing platforms to discuss such developments.
The SEC's stance on Bitcoin ETFs faced a hurdle when a court decision found no grounds for the SEC's refusal of Grayscale's proposal to transform its GBTC Bitcoin fund into an ETF.
Following this ruling, the SEC did not contest the judgment within the stipulated timeframe, suggesting a potential green light for a Bitcoin-related ETF soon.
Highlighting the credibility of firms proposing these ETFs, Grewal said, "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."
He hinted at quick advancements in this sector, though he emphasized that the final decision rests with the SEC.Grewal underscored the court's recent decision against the SEC's arbitrary rejections and stated, "I think that, after the U.S. Court of Appeals made clear that the SEC could not reject these applications on arbitrary or capricious basis, we're going to see the commission fulfill its responsibilities. I'm quite confident of that."
The acceptance of a Bitcoin ETF could provide investors an alternative to direct Bitcoin purchases on exchanges, making it more attractive for those wishing to invest in Bitcoin without owning the actual asset.
It's important to highlight that Coinbase, a top crypto exchange in the U.S., could benefit from an approved Bitcoin ETF, given its prominence in portfolios that provide crypto exposure.