In the recent meeting, Grayscale has met with the Securities and Exchange Commission (SEC), a move that might indicate the approval of a Spot Bitcoin ETF is on the way.
Why the Meeting with SEC is Important
On November 20, Bloomberg analyst James Seyffart revealed that the recent meeting was specifically with the SEC’s division of trading and markets. This move is crucial since the division handles the approval or denial of rule changes, including Grayscale’s application to change the Grayscale Bitcoin Trust (GBTC) to a Spot Bitcoin ETF listed on the NYSE Arca.
After the SEC decision to not appeal court ruling in favor of Grayscale, the court ordered the SEC to review the trust’s application. Meeting with the SEC signals that the SEC may be more open to approving the application this time around.
Meanwhile, Grayscale has made arrangements with BNY Mellon. This partnership includes the issuance and redemption of the trust’s shares if approved by the SEC, although there’s no set date for the trust’s operation.
More Positives on Spot Bitcoin ETF Approval
Rumors about other potential Spot Bitcoin issuers meeting with the Commission give hope for the approval of these funds. Such potential discussions could give the highest assurances of compliance and address the Commission’s concerns about such investment vehicles.
However, despite the positives, the chances of Spot Bitcoin ETF approval remain at 90% for the Bloomberg analysts by January 10, 2024.
Hot Take: A Positive Trend for Spot Bitcoin ETF Approval
Recent discussions with the SEC are indicative of the emerging favor towards the adoption of Spot Bitcoin ETFs, which is a new trend in the industry. If the SEC favors Grayscale’s application to convert the GBTC into a Spot Bitcoin ETF, this could open the door for more approvals of such investment vehicles in the future, suggesting a positive shift in the regulatory landscape. However, while the trend is encouraging, it is essential to exercise caution, as the actual implementation would depend on the SEC’s final decision.
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