The SEC Considers Bitcoin ETF Applications Following Court Ruling
The U.S. Securities and Exchange Commission (SEC) is reevaluating applications for a spot Bitcoin exchange-traded fund (ETF) after a significant court ruling involving Grayscale’s application to convert its Grayscale Bitcoin Trust (GBTC) into an ETF. SEC Chair Gary Gensler revealed in an interview with CNBC that the regulator is reviewing “between eight and a dozen filings.” Previously, the SEC had denied several of these applications, but the recent court rulings have prompted a fresh look. Gensler emphasized that he would not prejudge anything and that the commission operates within the boundaries set by Congress and interpreted by the courts.
The SEC’s History with Bitcoin ETFs
Historically, the SEC has rejected all applications for a spot Bitcoin ETF. However, there are indications that this may change. In October, the court ordered the SEC to review Grayscale’s request to convert GBTC into a spot Bitcoin ETF, citing arbitrary and capricious judgment. The SEC has since been engaged in active discussions with other spot Bitcoin ETF applicants, including BlackRock, Fidelity, and Franklin Templeton. These developments have fueled optimism within the crypto community that approval for a spot Bitcoin ETF is on the horizon. Analysts from Bloomberg and JP Morgan also predict a high likelihood of one or more ETF approvals in January.
Hot Take: The Impact of Spot Bitcoin ETF Approval
While the potential approval of a spot Bitcoin ETF is generating excitement, JP Morgan argues that it may not have a significant impact on the crypto market. A recent report suggests that approval is unlikely to attract fresh capital to the market. Nevertheless, the consideration of these applications by the SEC represents a notable shift in regulatory stance towards cryptocurrency-related financial products.
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