Approval of a spot bitcoin ETF in the US is inevitable, says former SEC Chairman Jay Clayton

The former head of the US Securities and Exchange Commission (SEC) says approval of a Bitcoin (BTC) exchange-traded spot market fund (ETF) will be inevitable.

In a new interview on CNBC Squawk Box, former SEC Chairman Jay Clayton says that approval of a spot market BTC ETF is inevitable as it is obvious that the leading crypto asset by market cap is not a security.

“It is clear that Bitcoin is not a security. It is clear that retail and institutional investors alike want access to Bitcoin and more importantly some of our most trusted providers who are fiduciaries or have a duty to act in the best interest want to offer this product to the retail audience. So I think approval is inevitable. The dichotomy between a futures product and a cash product cannot last forever.”

Last month, the SEC lost a lawsuit against Grayscale for rejecting the crypto company’s application to create a spot market BTC ETF. The judge in the case ruled that the SEC needs to reconsider its position in order to remain consistent.

In the past, the SEC has approved futures BTC ETFs, but has rejected numerous offers to create spot market BTC ETFs that would allow retail investors to access BTC through a broker, similar to precious metals.

According to Clayton, the fact that major financial institutions are setting up surveillance networks to monitor BTC ETFs in the spot market means that the SEC’s concerns about investor safety should be allayed.

“I felt that we weren’t sure if cash trading was so easily manipulated that retailers shouldn’t have access to it. There are now large institutions with oversight mechanisms that come and say, “No, that’s not the case.” We can have sufficient confidence in the effectiveness of the cash market when we believe it’s a legitimate product.”

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