Conversations surrounding the launch of spot Bitcoin exchange-traded funds (ETFs) in the United States have reached an advanced stage, according to unnamed sources cited by Reuters. The U.S. Securities and Exchange Commission (SEC) has reportedly begun asking detailed and technical questions to potential spot Bitcoin ETF issuers, indicating that the regulator may soon approve their pending applications.
Between June and December 2023, 13 asset management firms, including BlackRock, Ark Invest, Invesco, Fidelity Digital, VanEck, and Franklin Templeton, have filed applications with the SEC to launch spot Bitcoin ETFs. Grayscale also reentered the race in August after a court ordered the SEC to review its application to convert its flagship product, Grayscale Bitcoin Trust (GBTC), into a spot Bitcoin ETF. It is believed that the court’s ruling in Grayscale’s case may influence the regulator’s decision to approve the applications.
The SEC has historically rejected spot Bitcoin ETF applications due to concerns about market manipulation. However, sources familiar with the matter have revealed that the agency has started asking for details, some of which are typically requested towards the end of the ETF application process. These details include creation and redemption mechanisms, custody arrangements, and investor risk disclosures.
Furthermore, meetings between the SEC and the asset managers have progressed from involving staff from various divisions to employees in Chair Gary Gensler’s office. The frequency of information requests from the regulator has also increased from every few months to every week. As the discussions regarding spot Bitcoin ETFs advance, the potential issuers have made adjustments to their filings to reflect new arrangements.
While the crypto community awaits the SEC’s final decision on Ark Invest’s filing, which is the first in line and expected on January 10, 2024, there is no guarantee of approval. However, sources remain optimistic that the advanced nature of the discussions may lead to the approval of all the applications by next month.
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 |
| Companies | BlackRock, Ark Invest, Fidelity Digital, VanEck, Invesco |
| Currencies | Bitcoin |
| Securities | None |
