US Securities and Exchange Commission Chairman Gary Gensler hinted at a possible change in the agency's approach to Bitcoin ETFs.
During a CNBC interview, Gensler revealed that the U.S. Securities and Exchange Commission is reconsidering “between eight and a dozen applications” for spot Bitcoin ETFs, a move influenced by recent court decisions in the District of Columbia.
🇺🇲 SEC Chairman Garry Gensler commented on the SPOT #Bitcoin ETF on @CNBC.
Like in the past they rejected a request to reject these ETFs, but now BlackRock… I mean courts in DC intervened and now the SEC has to process these ETF applications again. 😅
Remember what I… pic.twitter.com/QrD42zaLIo
— Seth (@seth_fin) December 14, 2023
In the past, the SEC has been reluctant to approve such proposals, citing various concerns. However, Gensler hinted at a shift, attributing it to legal filings. Although he avoided referring directly to the Grayscale case, the context suggests a connection. Earlier this year, Grayscale won a lawsuit against the SEC that led to a reevaluation of its application to convert its Bitcoin trust into an ETF. The SEC did not appeal this decision.
Grayscale's progress, along with others pushing for ETF approval, has sparked optimism in the market. Bloomberg analysts James Seyffart and Eric Balchunas pointed to ongoing discussions between the SEC and Grayscale as suggesting a concerted effort toward regulatory compliance.
The race for a Bitcoin ETF has attracted various players, including large asset managers like BlackRock. With the SEC due to decide on ARK and 21Shares' proposal by January 10th, anticipation is high. Bloomberg analysts put the likelihood of approval at 90%, although skeptics like former SEC official John Reed Stark say such optimism is “absurd.”
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