In a recent interview with CNBC, Paul Grewal, the Chief Legal Officer of cryptocurrency exchange Coinbase, expressed optimism regarding the approval of bitcoin spot exchange-traded fund (ETF) applications by the U.S. Securities and Exchange Commission (SEC).

Grewal stated, "I'm quite hopeful that these applications will be granted, if only because they should be granted under the law." This positive sentiment comes as prominent traditional financial institutions, including BlackRock, have filed for spot ETFs with the SEC, sparking anticipation for a potential boost in the cryptocurrency market.

Unlike futures-based ETFs, a spot bitcoin ETF would track the price of bitcoin directly, providing investors with exposure to the largest digital cryptocurrency without needing to own it themselves. If approved, asset managers would be required to purchase, own, and store the digital assets on behalf of their clients, similar to physically backed gold ETFs. This move has the potential to drive up the prices of underlying cryptocurrencies, benefiting the sector as a whole.

Matrixport, a crypto services provider, has predicted that the approval of the BlackRock ETF alone could push the bitcoin price to reach between $42,000 and $56,000. Such a bullish scenario would also have a positive impact on crypto-linked stocks, such as Coinbase, MicroStrategy, and mining companies like Marathon and Riot Platforms.

Although Grewal did not speculate on the timing of the approvals, he emphasized that the involvement of prominent traditional finance firms in submitting robust proposals for spot bitcoin ETFs indicates progress is on the horizon. Grewal stated, "So that, I think, suggests that we will see progress there in short order."

The approval of bitcoin spot ETFs has been a much-anticipated development in the cryptocurrency industry, with market participants hoping for increased mainstream acceptance and adoption. As the trend continues towards digital assets playing a more prominent role in traditional financial markets, the decision of the SEC regarding these applications will undoubtedly be closely watched.

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