Clue Emerges for Approval of Spot Bitcoin ETF by SEC
Scott Johnsson, an attorney from Davis Polk, has provided insight into a potential clue regarding the approval of a spot Bitcoin ETF by the US Securities and Exchange Commission (SEC) on November 2. This speculation arises from the SEC’s decision not to contest the US Court of Appeals for the District of Columbia Circuit’s judgment, which favored Grayscale’s bid to convert its Bitcoin Trust (GBTC) into a spot Bitcoin ETF.
Johnsson drew attention to an upcoming closed-door meeting scheduled for November 2, where litigation claims and administrative proceedings will be addressed. Although there is no certainty that news will be released during this meeting, it is a date of interest considering leaks from a similar meeting in October 2021 preceded the launch of ProShares Bitcoin Strategy ETF (BITO).
History Repeating For Bitcoin?
The closed-door meeting on November 2 is outlined in the “Sunshine Act Notice” and will focus on institutional and settlement of administrative proceedings, as well as resolution of litigation claims. The Bitcoin community is closely watching this situation, especially after BITO became the fastest ETF to accumulate over $1 billion in assets following its launch on October 19, 2021.
Prior to BITO’s launch, Bloomberg reported on a leak from an SEC closed meeting held on October 14, indicating that the SEC was poised to allow the first US Bitcoin futures ETF to begin trading. With Grayscale’s spot Bitcoin ETF in view, it remains to be seen whether another leak will occur and whether the SEC will approve only Grayscale or all applicants simultaneously.
The SEC has recently received amendments from various applicants such as BlackRock, Fidelity, Ark Invest, and VanEck. This influx of amendments is seen as a positive sign that a Bitcoin ETF is close to approval, with the SEC working to bring all applicants to the same level.
Spot ETF Rejection Still Possible?
Despite the positive signs, there is speculation that SEC Chair Gary Gensler might unexpectedly reject spot Bitcoin ETF applications. However, Scott Johnsson has been trying to make sense of the process and believes that the threat of a rejection always looms. At present, Bitcoin is trading at $34,314.
Hot Take: Will the SEC Approve a Spot Bitcoin ETF?
The upcoming closed-door meeting on November 2 has sparked speculation about the potential approval of a spot Bitcoin ETF by the SEC. The decision not to contest Grayscale’s bid to convert its Bitcoin Trust into a spot Bitcoin ETF has raised hopes among the Bitcoin community.
If leaks similar to those prior to the launch of ProShares Bitcoin Strategy ETF occur again, it could indicate that the SEC is moving closer to approving a Bitcoin ETF. However, there is still uncertainty surrounding whether the SEC will approve only Grayscale or all applicants simultaneously. Despite positive signs, there is also the possibility of rejection. As we await further developments, the fate of a spot Bitcoin ETF hangs in the balance.
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