Could $17.7T Enter Bitcoin? Ex-BlackRock Manager Weighs In

Last Updated October 9th 2023
3 Min Read

Key Takeaways -

  • The SEC is under significant pressure, even from U.S. senators, to approve spot Bitcoin ETFs; odds of approval have risen to 75%.
  • Steven Schoenfield, CEO of MarketVector Indexes, predicts spot Bitcoin ETFs could launch in the next three to six months.
  • Schoenfield believes the SEC will approve all pending spot Bitcoin ETF applications simultaneously, ensuring a level playing field.

Steven Schoenfield, a former high-ranking executive at BlackRock, has made a groundbreaking prediction. He believes a staggering $17.7 trillion could flood into Bitcoin. However, there's a catch. This monumental shift is dependent on the U.S. approving spot Bitcoin ETFs. The timeline for this? A mere three to six months.

The SEC's Balancing Act

The U.S. Securities and Exchange Commission (SEC) is in a tight spot. They're facing mounting pressure to approve spot Bitcoin ETFs. Even U.S. senators are getting involved, urging the SEC to make a decision soon. Initially, experts thought the SEC would take until early 2024 to approve these ETFs. However, the odds have now risen to a surprising 75%.

A Revised Timeline

Steven Schoenfield, who has transitioned from a high-ranking role at BlackRock to the CEO position at MarketVector Indexes, has brought fresh insights into this unfolding narrative. During a recent panel discussion held in London, he made a significant update to the expected timeline for SEC approval. According to Schoenfield, spot Bitcoin ETFs are not just on the horizon; they could very well make their market debut in the next three to six months.

But that's not all. Schoenfield added another layer of nuance to the discussion. He expressed his belief that the SEC is likely to take a uniform approach to these approvals. In other words, the SEC will not give any single entity a first-mover advantage. Instead, they will level the playing field by approving all pending spot Bitcoin ETF applications simultaneously. This approach could have far-reaching implications, ensuring that no single institution gains an unfair advantage in what is set to become a highly competitive market.

Market Implications

Market Implications

The approval of spot Bitcoin ETFs could be a watershed event for the crypto sector. It has the potential to boost Bitcoin prices and transform the digital asset market. Currently, North America, led by the U.S., holds a 98% share in crypto futures ETF trading. This could jump to 99.5% with ETF approval.

The financial stakes are high, with a possible $17.7 trillion inflow from institutional investors. For context, BlackRock alone manages over $9.4 trillion. Other Wall Street giants like WisdomTree and Invesco Galaxy are also in the approval queue.

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