SEC’s Approval of Bitcoin Spot ETFs is Inevitable, Says Anthony Pompliano

Venture capitalist, investor, and Bitcoin advocate Anthony Pompliano recently shared his optimistic outlook on the approval of Bitcoin spot exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC).

In a conversation with CNBC’s Squawk Box, Pompliano discussed the SEC’s recent remarks labeling certain ETF filings as “inadequate” and shed light on the regulator’s expectations for clarity regarding custodians and surveillance-sharing agreements.

While unable to predict the exact timing, Pompliano believes that the spot Bitcoin ETF will eventually gain approval, particularly for players like BlackRock, a significant presence in the financial markets.

Pompliano emphasized that the SEC’s concerns about the “inadequate” filings stem from a desire for comprehensive information.

The regulator seeks transparency regarding custodian arrangements and surveillance-sharing agreements with other entities.

CBOE has already refiled its application, revealing a surveillance-sharing agreement with Coinbase. Pompliano expects other entities, including BlackRock, to follow suit and provide the necessary clarity to address the SEC’s concerns.

While unable to predict the exact approval timeline, Pompliano remains confident that institutions will invest heavily in a Bitcoin spot ETF once approved, similar to the influx of capital witnessed with the Bitcoin futures ETF.

Pompliano highlighted the impressive performance of Bitcoin in 2023, surpassing the growth of the Nasdaq Composite Index.

Bitcoin has surged by 85% since the beginning of the year, outpacing the Nasdaq’s 32.7% growth. Despite Bitcoin’s current price being below its all-time high, Pompliano emphasized the growth of fundamental factors such as increasing hash rate and adoption.

He anticipates a potential price surge following the Bitcoin halving event scheduled for April or May of next year.