Is the SEC Ready to Approve a Bitcoin ETF?
Hester Peirce, also known as “Crypto Mom,” a pro-crypto member of the Securities and Exchange Commission (SEC), discussed the possibility of the agency approving a spot Bitcoin exchange-traded fund (ETF) in the United States. While Peirce did not provide specific details about the SEC’s plan, she acknowledged that the regulator’s court loss to Grayscale is an important factor.
Grayscale, the owner of the largest Bitcoin fund in the world, sued the SEC in June 2022 after its application to convert its Grayscale Bitcoin Trust (GBTC) into a spot ETF was unfairly rejected. The court of appeals sided with Grayscale in August, agreeing that the SEC’s treatment was arbitrary and capricious. Since then, the SEC has not appealed the case.
Peirce expressed her frustration with the SEC’s approach to Bitcoin and other crypto assets, stating that she hopes for a more productive approach from the agency. However, she acknowledged that other fund managers, such as Mike Novogratz and Cathie Wood, have noticed a change in behavior from the SEC since its court loss.
The Shift in Behavior
According to Peirce, major players in the ETF race, including Fidelity and BlackRock, have revised their applications to address concerns raised by the SEC. This includes providing more risk disclosures. BlackRock CEO Larry Fink, who was previously skeptical about Bitcoin, has now recognized investors’ strong demand for it.
Peirce also mentioned that she hears a lot of interest from investors regarding these types of products. This suggests that there is growing demand for a Bitcoin ETF among market participants.
Hot Take: Is Approval Finally on the Horizon?
After years of waiting, it seems that the SEC may finally be ready to approve a spot Bitcoin ETF in the United States. The court loss to Grayscale and the subsequent shift in behavior from the agency indicate a potential change in approach. With major players revising their applications and acknowledging investors’ demand for Bitcoin, there is renewed hope for the approval of a Bitcoin ETF. While there are no specific details about when this might happen, the industry is cautiously optimistic that progress is being made.
Source: Decrypt
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