Significant progress has been made in discussions between the US Securities and Exchange Commission (SEC) and asset managers regarding the potential approval of Bitcoin exchange-traded funds (ETFs), according to Reuters. Thirteen firms, including Grayscale Investments, BlackRock, Invesco, and ARK Investments, are awaiting decisions from the SEC on their applications for spot ETFs. The SEC has historically been resistant to approving such ETFs due to investor protection concerns. However, a court ruling in August against the SEC’s rejection of Grayscale’s spot ETF application has prompted a change in the SEC’s stance.
The discussions between the SEC and asset managers have progressed to key technical details, indicating that the agency may soon approve the products. The topics covered in these discussions include custody arrangements, creation and redemption mechanisms, and investor risk disclosures. The SEC has long been concerned about the vulnerability of Bitcoin to manipulation, but the focus of the discussions has shifted to substantive details. The advanced nature of these discussions suggests that the SEC may approve ARK’s application and possibly some of the other 12 applications in the New Year.
Executives from BlackRock, Grayscale, Invesco, and 21 Shares, in collaboration with ARK, have met with SEC staff since September. The pace of SEC information requests has also increased, with some recent meetings taking place with staff in Chair Gary Gensler’s office. However, the SEC has not publicly indicated its stance on these filings. The primary sticking points remain the nature of the settlement mechanism and whether it will be cash or “in-kind.”
Despite the remaining concerns, many issuers believe they have addressed the SEC’s market manipulation concerns through surveillance arrangements with listing exchanges and Coinbase, the largest US cryptocurrency exchange. The potential approval of a spot Bitcoin ETF could trigger significant demand in the first few days, estimated to be up to $3 billion. Overall, there is optimism among industry insiders that several ETFs will be approved simultaneously, allowing investors to compare them.
At the time of writing, Bitcoin is trading at $43,442.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | positive |
| Relevance Score | 1 |
| People | Gary Gensler, Bryan Armour, Cathie Wood |
| Companies | Invesco, ARK Investments, Grayscale Investments, BlackRock, SEC |
| Currencies | Bitcoin |
| Securities | None |
