SEC Holds Meetings with Stock Exchanges to Finalize Bitcoin ETF Applications
The U.S. Securities and Exchange Commission (SEC) is reportedly in discussions with the country’s largest stock exchanges, including Nasdaq, CBOE, and NYSE, to refine the details of several Bitcoin ETF applications. These meetings aim to finalize comments on the 19b-4s submitted by issuers of BTC Spot ETFs. The 19b-4 SEC form is used to record rule changes with the SEC. Earlier this year, Nasdaq filed for permission to list shares of BlackRock’s iShares Bitcoin Trust, which prompted other fund sponsors and exchanges to file competing Bitcoin spot ETF products.
SEC Chairman Forced to Reevaluate Bitcoin ETF Applications
The SEC has previously denied all Bitcoin ETF applications due to concerns about market manipulation. However, after a court loss to Grayscale in August, SEC Chair Gary Gensler has been compelled to take a fresh look at these applications. Notably, investment managers like Cathie Wood and Mike Novogratz have reported increased engagement from the agency regarding their spot ETF applications since the Grayscale court battle concluded.
Anticipated Approval for Bitcoin ETFs
Bloomberg’s ETF analysts expect simultaneous approvals for most or all ETF applicants within the week. The SEC is legally required to approve or deny Ark Invest’s ETF application before January 10. Bloomberg’s Eric Balchunas suggests that the SEC wouldn’t be holding meetings with stock exchanges if it didn’t plan to approve the ETFs. However, Bitcoin’s price recently dropped following predictions that the SEC may deny the Bitcoin ETFs, potentially hindering institutional capital inflows.
Hot Take: Uncertainty Surrounding Bitcoin ETFs Impacts Market
The SEC’s ongoing evaluation of Bitcoin ETF applications has created uncertainty in the market. While there is optimism for potential approvals, concerns about denial have led to price fluctuations. Investors are eagerly awaiting the SEC’s decision, as it could open the doors for increased institutional investments in Bitcoin. The outcome will have a significant impact on the cryptocurrency industry and its future growth.
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