Communication between Fund Managers and SEC on Spot Bitcoin ETFs Improving, Say Analysts
According to Bloomberg analysts James Seyffart and Eric Balchunas, the communication between fund managers and the Securities and Exchange Commission (SEC) regarding spot bitcoin exchange-traded funds (ETFs) is becoming more constructive. They noted that recent updates to the prospectus of Ark and 21SHares, which added new text, indicate a positive conversation with the SEC. This suggests that these funds are on their way to being approved.
SEC Opts Against Appealing Grayscale Ruling
The SEC’s decision not to appeal a court ruling involving Grayscale Investments could have significant implications for future spot bitcoin ETF decisions. The ruling stated that the SEC’s rejection of Grayscale’s ETF proposal was “arbitrary and capricious.” Bloomberg reported that this decision is expected to open up dialogue between Grayscale and the SEC. However, the regulator still has the option to file an appeal with the U.S. Supreme Court, although this is unlikely.
Next Steps in the Process
James Seyffart mentioned that more information will be available next week regarding the process between fund managers and the SEC. He stated that it will be clearer what happens next. It is important to note that Bitcoin had a muted response to the SEC’s decision not to appeal. In contrast, when the court ruling favored Grayscale in late August, Bitcoin rallied by 7%. Currently, Bitcoin’s market capitalization has decreased by almost 4% in the past week.
Hot Take: Implications of SEC’s Decision on Spot Bitcoin ETFs
The SEC’s choice not to appeal the ruling involving Grayscale Investments has sparked optimism among fund managers seeking approval for spot bitcoin ETFs. This decision indicates that the SEC may be more open to considering and approving such ETFs in the future. While there are still potential legal avenues for the regulator, it is unlikely that they will file an appeal with the U.S. Supreme Court. Overall, this development suggests a positive shift in the regulatory landscape for spot bitcoin ETFs, which could have significant implications for the cryptocurrency market.
By
By
By
By
