SEC in Talks with Grayscale to Convert GBTC into Spot Bitcoin ETF
The US Securities and Exchange Commission (SEC) is currently discussing the possibility of converting Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin exchange-traded fund (ETF). According to a report by CoinDesk, Grayscale has been in talks with two SEC divisions since its legal victory against the regulator on August 29.
Research firm Bernstein predicts that approval of spot crypto ETFs could lead to a significant surge in crypto assets under management, potentially reaching $650 billion over the next five years. The industry could transform from a “cottage industry” into a sector generating $50 billion in revenues during this period.
Speculation about potential approval has led to a surge in Bitcoin prices, with BTC gaining over 30% in the last three months. As of now, Bitcoin has surged more than 4.4% to trade at $36,917 at 09:30 EST. Additionally, approximately $154M worth of shorts were liquidated in the last 24 hours, according to CoinGlass.
SEC May Approve Pending Bitcoin ETF Applications Within Eight Days
Bloomberg ETF analyst James Seyffart suggests that the US securities regulator could approve all pending spot Bitcoin ETF applications within eight days. The regulator has until November 17 to approve these filings after extending the deadline for several pending spot Bitcoin ETF applications. Seyffart estimates a 90% chance that the SEC will approve them before January 10.
Hot Take
The SEC’s ongoing discussions with Grayscale and the potential approval of spot crypto ETFs could have a significant impact on the cryptocurrency market and fund management industry. If approved, it could lead to substantial growth and transformation within the industry.
Insa’s extensive background in the financial realm encompasses roles as a writer, trader, and personal finance coach. Her proficiency spans a wide spectrum, ranging from commodities and indices to forex and cryptocurrencies. Insa’s specialization lies in furnishing strategic investment advice tailored to the fintech investment niche.