SEC Chairman Gary Gensler Provides Updates on Bitcoin Spot ETF Applications
The Chairman of the Securities and Exchange Commission (SEC), Gary Gensler, recently discussed the status of several Bitcoin spot exchange-traded fund (ETF) applications. Gensler confirmed that the SEC is reviewing multiple applications for Bitcoin spot ETFs.
Gensler mentioned that there are around eight or nine such applications under review. He emphasized that the review process has been ongoing for a while, but he did not specifically address Grayscale’s situation.
“The staff is doing work on those multiple filings.”
Gary Gensler, SEC Chairman
Gensler explained that proponents of Bitcoin spot ETFs must ensure their products are registered with the SEC and go through a filing process similar to a public offering.
“This is a time-tested process that goes back decades. The staff of the SEC, it’s called the Disclosure Review Team, but in that group, they respond and give feedback to potential issuers.”
Gary Gensler, SEC Chairman
Uncertainty Surrounding Grayscale Investments and Spot Bitcoin ETF
While discussing the topic, Gensler refrained from commenting on how the situation with Grayscale Investments would unfold following the SEC’s decision not to appeal the court’s ruling. He also did not indicate whether the agency would approve individual ETFs or wait for approval of all applications in the group.
In a recent court ruling, the District of Columbia Court of Appeals denied Grayscale Investments’ request to convert its Grayscale Bitcoin Trust into a spot Bitcoin ETF. However, the court granted Grayscale’s motion for reconsideration and reversed the Commission’s order. As a result, the SEC must review Grayscale’s application again after rejecting it in July 2022.
Hot Take: SEC Continues to Evaluate Bitcoin Spot ETF Applications
The recent comments by SEC Chairman Gary Gensler shed light on the ongoing review process for Bitcoin spot ETF applications. With numerous applications under consideration, proponents of these ETFs must ensure compliance with SEC regulations and go through a filing process akin to a public offering.
Although Gensler did not provide specific details about Grayscale Investments’ situation or the agency’s approach to approving ETFs, his remarks indicate that the SEC is actively engaging with these applications. The recent court ruling denying Grayscale’s conversion request adds further complexity to the landscape. As the SEC reevaluates Grayscale’s application, the future of Bitcoin spot ETFs remains uncertain, leaving market participants eagerly awaiting regulatory decisions.
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