Thomas Daniels
U.S. Securities and Exchange Commission Chair Gary Gensler has suggested a potential shift in the agency’s approach to Bitcoin ETFs. During an interview with CNBC, Gensler disclosed that the SEC is reevaluating “between eight and a dozen applications” for Bitcoin ETFs based on the spot market, influenced by recent court rulings in the District of Columbia.
Historically, the SEC has been cautious about approving such proposals, citing various concerns. However, Gensler hinted at a change in stance, attributing it to input from the judiciary. While he didn’t directly mention the Grayscale case, the context implies a connection. Earlier this year, Grayscale emerged victorious in a legal battle against the SEC, leading to a reconsideration of its application to convert its Bitcoin trust into an ETF. The SEC did not challenge this decision.
The progress made by Grayscale and other advocates of ETF approval has generated optimism in the market. Bloomberg analysts James Seyffart and Eric Balchunas highlighted ongoing discussions between the SEC and Grayscale, suggesting a collaborative effort towards regulatory compliance.
The race to launch a Bitcoin ETF has attracted a diverse range of participants, including major asset managers like BlackRock. With the SEC scheduled to make a decision on the proposals from ARK and 21Shares by January 10, there is significant anticipation. Bloomberg analysts estimate a 90% likelihood of approval, though skeptics like former SEC staffer John Reed Stark find such optimism “unrealistic.”
