The SEC has been asking prospective issuers to give well-detailed descriptions of their various spot Bitcoin ETF products.
It appears that from here onwards, there’s no going back on the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States. This follows after a recent Reuters report claimed that talks between the US Securities and Exchange Commission (SEC) and the asset manager applicants of the said ETFs have entered into a crucial stage.
Anticipation Enters Top Gear for Spot Bitcoin ETF Approval
Citing sources familiar with the matter, Reuters says the regulator is only now looking at a few technicalities and may be set to approve the ETFs soonest.
As Coinspeaker earlier reported, thirteen firms have lined up applications for such ETFs that track the price of Bitcoin before the SEC. These include notable names such as BlackRock, Grayscale Investments, Cathie Wood’s ARK Invest, and Invesco among others.
Meanwhile, it might be worth noting that, for a long time, the SEC hinged on the excuse of investor protection as a reason why it would not approve a Bitcoin ETF. However, its earlier stance changed in August when a court ruled that the regulator was wrong to reject Grayscale’s application to convert its Bitcoin trust into an ETF. That was the pivotal moment.
Since that ruling, the SEC has been asking prospective issuers to give well-detailed descriptions of their various products. That would include custody arrangement, creation, and redemption processes, and full disclosure of investor risks.
According to sources, the SEC’s scope of scrutiny has changed entirely, giving a sign that a wave of approval is near. This was also confirmed by ARK CEO Cathie Wood last month when she told Yahoo Finance that the nature of the SEC discussions is now different and may have tipped the odds in favor of having several applications approved.
A Little Dose of Skepticism
For what it’s worth though, the SEC has not outrightly said anything to suggest that it will surely approve the products. More so, the Chair of the agency Gary Gensler, is a renowned crypto skeptic who has openly condemned the industry, albeit on several occasions.
By deciding not to appeal the August ruling, the SEC may have hinted that an approval will come. The timeframe, however, is what continues to elude persons interested in the subject.