SEC Shows Positive Signs for Bitcoin ETF, Says Ark Invest CEO
The Securities and Exchange Commission (SEC) has been engaging in more productive conversations regarding a spot Bitcoin ETF, according to Cathie Wood, CEO of Ark Invest. Wood noted that the SEC recently asked Ark for clarifications on potential risks associated with a spot ETF and how they would address them. This change in behavior from the regulator has raised hopes that Bitcoin ETFs will be approved. Fidelity also provided an updated prospectus to the SEC, addressing similar questions posed to Ark, indicating ongoing dialogue between potential ETF issuers and the SEC. Mike Novogratz, CEO of Galaxy Digital, predicted that his and other ETF applications would receive approval by the end of the year.
Grayscale Lawsuit Boosts Prospects for Bitcoin ETFs
The recent court loss of the SEC against Grayscale, the world’s largest Bitcoin fund, has worked in favor of ETF applicants. The court ruled that the SEC’s denial of Grayscale’s conversion into a spot ETF was “arbitrary and capricious.” The SEC now faces instructions from the court on how to handle Grayscale’s application, potentially leading to its approval. Some speculate that the SEC may respond by rescinding approval for prior Bitcoin futures ETFs, but experts believe this outcome is unlikely. Ark’s ETF application is the first to require a final decision by January 10.
Hot Take: Positive Signs for Bitcoin ETF Approval
The SEC’s change in behavior and engagement in productive conversations with potential Bitcoin ETF issuers indicate a growing possibility of approval for these investment products. Cathie Wood of Ark Invest and other industry leaders have noticed this shift and expressed optimism about the future of Bitcoin ETFs. The recent court ruling against the SEC in favor of Grayscale further strengthens the prospects for ETF approval. While there is still uncertainty, the ongoing dialogue between applicants and the SEC suggests that a number of Bitcoin ETFs could be approved simultaneously. Overall, the signs are positive for the long-awaited arrival of a Bitcoin ETF in the United States.
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