The SEC’s 2023 Plan: Coordinating Approval of Cryptocurrency ETFs

The SEC's 2023 Plan: Coordinating Approval of Cryptocurrency ETFs


The SEC Delays Decisions on Crypto ETFs

The U.S. Securities and Exchange Commission (SEC) has recently postponed decisions on crucial applications in the cryptocurrency ETF sector. This includes Hashdex’s proposal to convert its Bitcoin Futures ETF into a spot ETF and Grayscale’s new futures-based Ether ETF application.

SEC’s Postponement Strategy Unveiled

In an interview with CoinDesk, Quinn Thompson, Maple Head of Growth and Capital Markets, revealed insights into the SEC’s postponement strategy. He explained that the delay is a coordinated effort by the SEC to review multiple ETF applications for a simultaneous launch in January. This move is likely driven by the need for clarity, especially amidst concerns about a potential government shutdown.

Predictions for First-Mover Advantage

Thompson predicts positive outcomes for industry leaders like BlackRock, Invesco, and Galaxy in the cryptocurrency ETF space. He also acknowledges the potential challenges smaller entities may face. Despite this, Thompson emphasizes the overall positive impact on the industry, with institutional finance teams increasingly pushing for crypto allocations among investors and asset allocators.

Active Engagement Between SEC and Crypto Exchanges

As the market awaits the SEC’s decision on a spot Bitcoin ETF, there are signs of active engagement between the SEC and cryptocurrency exchanges. Eric Balchunas, Senior ETF Analyst at Bloomberg, highlighted ongoing discussions between the SEC and exchanges regarding a spot Bitcoin ETF. Balchunas mentioned in a recent tweet that the SEC’s Trading and Markets division is advising these exchanges on necessary amendments, signaling a progressive dialogue in the cryptocurrency regulatory landscape.

Hot Take: The Impact of SEC’s Postponements

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The SEC’s delay in decisions on cryptocurrency ETFs has shed light on the regulatory landscape in the sector. It reflects a coordinated effort to review and potentially approve multiple ETF applications for a simultaneous launch in January, driven by the need for clarity amid concerns about a potential government shutdown. Despite the challenges, this move is expected to have a positive impact on the industry, with greater institutional support for crypto allocations among investors and asset allocators. The ongoing engagement between the SEC and cryptocurrency exchanges also indicates a progressive shift in the regulatory landscape, signaling potential positive developments for the cryptocurrency ETF sector.

The SEC's 2023 Plan: Coordinating Approval of Cryptocurrency ETFs
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