The SEC is moving to approve a Bitcoin spot ETF that would allow direct access to investors who want to benefit from the potential Bitcoin market, experts estimate.
The SEC's talks with fund managers seeking its approval to launch a Bitcoin spot ETF in the US market, have advanced to a key level. This was confirmed by Reuters yesterday, citing sources familiar with the matter.
According to the news agency, the talks that the US securities regulator is holding with companies such as BlackRock, Grayscale, Invesco, Ark Invest and the rest of the applicants who want to launch a Bitcoin spot ETF in the country, are focused on discuss key technical details of this investment vehicle, which may mean that the regulator is preparing for a possible approval.
January 10th, a key day for the Bitcoin spot ETF
According to experts, January 10th of next year is a key date when the SEC's decision regarding the Bitcoin Spot ETF could be known, since the regulator has until that day to issue a final decision on the fund application submitted by Ark Invest.
On the other hand, Bloomberg ETF analyst James Seyffart commented that the approval of this investment vehicle could occur a few days earlier, estimating a probable approval window between January 5 and 10, 2024.
In recent weeks, the SEC has been discussing with several of the companies that have pending applications to launch a Bitcoin spot ETF, such as BlackRock, which recently submitted a new S1 review paper, to adjust its Bitcoin ETF application to SEC requirements.
Other fund managers including Invesco, Grayscale and Ark Invest have also met with the securities regulator to the same end.
SEC appears more open to Bitcoin ETF approval
Cathie Wood, founder and CEO of Ark Invest, said during an interview last month that the nature of the talks with the SEC had changed and that the regulator seemed more open to the potential approval of a Bitcoin spot ETF. Likewise, Ophelia Snyder, president of 21Shares, told Bloomberg that the SEC was creating a different feeling on the long-awaited Bitcoin listed investment vehicle, meeting with asset management firms to discuss details about this financial instrument.
All these assessments by experts point to the fact that SEC unlikely to reject all Bitcoin ETF applications cash that are on the table and that the possible approval of one or more of these requests is getting closer.
As reported by this media, they are now thirteen fund managers seeking SEC approval to launch a Bitcoin spot ETF in the US market.
Grayscale's push for Bitcoin ETF
The speculation about the SEC’s approval of the Bitcoin spot ETF stems from the US Court of Appeals’ ruling in August, which granted the company a legal victory to move forward with its plan to convert the Grayscale Bitcoin Trust (GBTC) into a Bitcoin spot ETF.
The Court of Appeals said the SEC had acted “arbitrarily and capriciously” in denying Grayscale’s application to transform GBTC into a spot ETF. The Court also said the SEC’s denial made Grayscale’s application “unfair” and “unfair.” lacked foundation, considering that the regulator had approved several Bitcoin futures ETFs that were “materially similar.”
Since this ruling, Michael Sonnenshein, CEO of Grayscale Investment, is quite Optimistic about possible approval of a Bitcoin exchange-traded fund.
In addition to winning the legal battle against the SEC, the securities regulator decided not to appeal the court's ruling and, as Sonnenshein recently said, is now eager to "make progress" regarding this investment vehicle.
“We have been actively engaging with the SEC. The questions we receive from them indicate that they want to get involved in this matter.”, Sonnenshein said.
While optimism among fund managers and the crypto community is growing by the day, to date, the SEC has not commented on whether it will approve a Bitcoin ETF. Furthermore, Gary Gensler, the current SEC Chairman, remains skeptical of Bitcoin and cryptocurrencies. Still, the price of Bitcoin has been boosted by the anticipation of a possible spot ETF, trading above $44.000 on the market at press time.
Continue reading: Grayscale and the SEC held a meeting to discuss Bitcoin ETF
