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President of the Chicago Board Options Exchange (CBOE) John Palmer has revealed his optimism on the approval of the Bitcoin Spot Exchange-Traded Fund (ETF) and its impact on the cryptocurrency panorama.

Bitcoin Spot ETF Will Pave For Pension And RIA-Based Funds

The CBOE Digital’s president shared his optimism in a latest interview on Bloomberg TV on Tuesday, January 2. His remarks are made one week earlier than the SEC’s necessary deadline of January 10, during which the regulatory watchdog is predicted to determine whether or not or to not approve the spot BTC ETF.

According to him, Bitcoin Spot ETF will appeal to new institutional buyers following approval from the United States Securities and Exchange Commission (SEC).

Palmer said:

I believe seeing that approval goes to pave the best way for pension funds and RIA-based funds to have the ability to spend money on property in a spot Bitcoin ETF the place they might not have the ability to achieve that entry in the present day in only a native, spot Bitcoin token.

Furthermore, he has asserted that any potential approvals for an ETF might change how establishments method derivatives, equivalent to futures contracts and choices.

In the interview, Palmer highlighted that an ETF approval sparks a broader crypto ecosystem. Due to this, there are extra massive buyers and institutional gamers who’re used to hedging dangers.

Palmer expects a big progress in Bitcoin derivatives merchandise with a doable spot ETF approval. He asserted that the institutional gamers will ultimately “lean on to these derivatives more and more” to hedge dangers.

When requested concerning the breakdown between extra institutional buyers and retail buyers on the derivatives points, Palmer said that “the breakdown is difficult to decide yet.” This is as a result of “we are on the wait and see,” however he believes “institutions will generally lead the way” with individuals within the spot Bitcoin ETF using the hedging instruments.

However, he additionally famous that the “retail will also look for that as well.” He additional highlighted a broader worldwide following in retail when it comes to acquiring entry to derivatives in cryptocurrency.

SEC Decision On ETF Approval Not Certain

Fox Business journalist Eleanor Terrett not too long ago underscored her tackle the approval of the Bitcoin spot ETF by the SEC. The journalist took to X (previously Twitter) to weigh in on the affair.

In the X put up, Terrett underlined how unpredictable the SEC’s decision-making course of is. “While the SEC is surely unpredictable, it would surprise me if approvals were to happen tomorrow,” she said. 

Terrett famous that by way of conversations she has had with issuers, the SEC wants to guage and supply suggestions on the modifications made to the S-1s, submitted on Thursday and Friday.

Furthermore, the regulator could inform the issuer of the S-1 kind’s closing submission date after this assessment section, which could happen “in the next 24 to 48 hours.” However, that is if the SEC decides to reflect the approval timeline to the Ethereum futures in October.

Featured picture from iStock, chart from Tradingview.com