Bitcoin ETF Decision Looms, SEC Engages Asset Managers
The US Securities and Exchange Commission (SEC) is actively engaging with asset managers in anticipation of a crucial decision on the approval of a bitcoin exchange-traded fund (ETF), as revealed in memos released this week.
SEC’s Postponements: Aiming to Address Multiple Bitcoin Fund Applications
In a memo, the SEC disclosed a recent meeting with Grayscale on Thursday to discuss the potential transformation of the Grayscale Bitcoin Trust into an ETF. Grayscale previously faced resistance from the SEC on this matter, but after challenging the decision in court, they emerged victorious.
Additionally, SEC officials held discussions with representatives from BlackRock and Nasdaq on Wednesday, as outlined in a separate memo. BlackRock had submitted a filing for a bitcoin ETF in June, and other asset management firms followed suit.While the SEC retains the authority to deny crypto ETFs, many experts in the industry anticipate the launch of such funds in the U.S. early next year. The SEC has postponed decisions on several bitcoin funds recently, possibly aiming to address multiple applications simultaneously.
Despite SEC Chair Gary Gensler’s outspoken criticism of cryptocurrencies, he has expressed a willingness to consider his staff’s input on a potential bitcoin ETF in recent public statements.
Grayscale’s strategic move was highlighted by the recent hiring of John Hoffman, an Invesco ETF executive, as a managing director. Hoffman will head distribution and strategic partnerships for Grayscale, indicating the crypto asset manager’s preparedness to launch the fund if it secures approval.
The market’s growing confidence in the eventual approval of a bitcoin ETF seems to be influencing the price of bitcoin positively. On Thursday, the cryptocurrency was trading above $37,000, marking a significant rebound from its late-summer dip to around $26,000.
Another meeting yesterday b/w Grayscale & SEC…
Absolutely fascinated to see how this all plays out, especially timing of GBTC uplisting vs launch of competing spot btc ETFs.
Btw, if you’re tired of me tweeting about this, good news is I think we’re approaching finish line. pic.twitter.com/lsngOSe57z
— Nate Geraci (@NateGeraci) December 1, 2023
Grayscale’s Amended Filing
Finance Magnates reported earlier that Grayscale had submitted an amended filing for its forthcoming spot Bitcoin ETF to the SEC on November 22. The filing is seen as a routine step for firms that have met reporting requirements. Grayscale’s ETF proposal involves converting an existing investment vehicle, and recent discussions with the SEC and NYSE Arca indicate ongoing dialogue regarding the ETF’s potential listing.
A recent ruling by a three-judge panel of the District of Columbia Court of Appeals favored Grayscale, asserting that the SEC erred in rejecting the proposed Bitcoin ETF without a clear explanation. Following this, Grayscale urged the SEC to review and approve its ETF application, emphasizing the optimal use of resources in a letter from its law firm.