SEC Chair Says He’s Still Weighing Bitcoin ETF Proposals

UTC by Bhushan Akolkar · 3 min read
SEC Chair Says He’s Still Weighing Bitcoin ETF Proposals
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The SEC chair said that the Commission has a lot of applications to review for spot Bitcoin ETFs. Mike Novogratz expects a spot Bitcoin ETF coming by the year end.

There’s a lot happening around the approval of the spot Bitcoin ETF in the market with the SEC losing the edge over the applicants. During his interview with Bloomberg on Wednesday, October 18, Gary Gensler stated that they have multiple filings to review as of now.

Furthermore, the Commission is reviewing the right exchange-traded products for Bitcoin. “Those filings are in front of us I can’t prejudge any one of them but there’s eight or 10 that we’re looking at,” he said.

He clarified that these applications go beyond mere formality; they entail substantial considerations involving various SEC divisions. In particular, the Division of Corporation Finance offers insights, while the Division of Trading and Markets meticulously examines the submissions.

Major asset management firms, including BlackRock, Invesco, Valkyrie, and Fidelity, are currently facing delays as the SEC has introduced further proceedings to decide the destiny of their planned spot Bitcoin ETFs. These additional steps imply that the regulatory agency is choosing a thorough approach, potentially extending the ongoing review processes by at least a month. Furthermore, Gensler has not confirmed whether the SEC will grant approval to a single fund before waiting for a comprehensive group approval.

Eyes on Grayscale ETF Approval

This Friday, a DC court is set to issue a mandate that could potentially implement an August ruling in favor of Grayscale Investments LLC. The company had taken legal action against the US Securities and Exchange Commission (SEC) while seeking to transform its Bitcoin Trust (GBTC) into an ETF. This development follows the SEC’s decision last week not to appeal the prior verdict, which it had lost. Bloomberg analyst James Seyfarrt said:

“We are waiting on some sort of announcement or just additional information from the SEC, Grayscale or possibly the courts on what happens next. The full next steps can’t truly be known because this is a first-of-its-kind situation.”

Any progress in the Grayscale case will bring further clarity to the future of spot Bitcoin ETFs in the US. Grayscale has asserted that transitioning GBTC into an ETF could unleash significant value, potentially worth billions, for its investors.

Earlier this week false news broke out that the SEC has approved the BlackRock iShares spot Bitcoin ETF application. The Bitcoin price witnessed a minor pump-and-dump as BlackRock confirmed that the news wasn’t true.

Following the development, Ark Invest’s Cathie Wood said that the SEC will approve multiple spot Bitcoin ETFs at once. Cryptocurrency investor Michael Novogratz expressed his anticipation on Wednesday that the SEC would approve a Bitcoin ETF within the year.

Bitcoin News, Cryptocurrency News, Funds & ETFs, Market News, News
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