Cordial Discussion with Applicants
The U.S. Securities and Exchange Commission (SEC) appears to be adopting a more open approach towards Bitcoin exchange-traded fund (ETF) applications. In a recent interview, Cathie Wood, CEO of Ark Invest, noted that instead of outright rejecting applications, the SEC has started asking questions about proposed ETFs. Wood sees this change in behavior as a positive sign, raising hopes for the approval of one or more Bitcoin ETFs. Mike Novogratz of Galaxy Digital also confirmed that the SEC asked similar questions about their proposed ETF. He believes that spot Bitcoin ETFs will be approved by the end of the year. However, SEC Chairman Gary Gensler remained tight-lipped on the subject.
Putting in Work
In an interview with Bloomberg, Gensler revealed that the SEC is currently reviewing eight to ten spot Bitcoin ETF applicants. The applications are being reviewed by the Corporate Finance Division and the Division of Trading and Markets, following a time-tested process that has been in place for decades. Gensler emphasized that he cannot comment on ongoing cases and will not pre-judge the outcome of the process. This interview aligns with recent developments where the SEC decided not to appeal its court case against Grayscale’s ETF but has not yet provided approval for it. It is expected that multiple ETFs will either be approved or denied in the coming months.
Hot Take: SEC Takes a More Open Stance on Bitcoin ETF Applications
The U.S. Securities and Exchange Commission (SEC) appears to have shifted its approach towards Bitcoin exchange-traded fund (ETF) applications. Instead of outright rejecting them, the SEC is now engaging in cordial discussions with applicants and asking questions about their proposals. This change in behavior has raised hopes among industry insiders like Cathie Wood and Mike Novogratz that one or more Bitcoin ETFs will be approved soon. In a recent interview, SEC Chairman Gary Gensler confirmed that the commission is currently reviewing several spot Bitcoin ETF applications. While Gensler did not provide any hints about the outcome, it is expected that multiple ETFs will either be approved or denied in the coming months.
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