Chairman of the U.S. Securities and Exchange Commission (SEC) Gary Gensler We are considering a potential paradigm shift in our approach to discovering Bitcoin exchange-traded funds (ETFs). Gensler hinted at the SEC’s recent reassessment of “eight to 12 filings” for Bitcoin ETFs, which would mark a departure from its previous stance.
Gensler’s Remarks and SEC’s Reconsideration
In a recent interview with CNBC, Gensler hinted that the SEC is reconsidering its position on spot Bitcoin ETFs. This decision is influenced by a recent District of Columbia court ruling and is likely to reshape the regulatory environment for such investment vehicles.
🇺🇲 SEC Chairman Garry Gensler commented: @CNBC About spots #Bitcoin ETF.
In the past, BlackRock refused to cover these ETFs, but now… What I mean is that the courts in DC got involved and now the SEC has to process these ETF applications again. 😅
What do I remember… pic.twitter.com/QrD42zaLIo
— Seth (@seth_fin) December 14, 2023
Historically, the SEC has been skeptical and hesitant to approve such ETF proposals, citing a variety of concerns. But Gensler’s hints about a potential change in the SEC’s view are tied to the Department of Justice’s opinion.
Although he did not specify grayscale case, there seems to be a connection. Earlier this year, Grayscale won a legal victory against the SEC, triggering a reevaluation of its application to convert its Bitcoin trust into an ETF. Notably, the SEC did not challenge this decision.
Optimism amid regulatory discussions
Grayscale’s positive progress among other companies vying for ETF approval has sparked optimism within the market. Bloomberg analysts James Seyffart and Eric Balchunas highlighted ongoing discussions between the SEC and Grayscale, indicating a potential collaborative effort to achieve regulatory compliance.
The Bitcoin ETF race has attracted a variety of participants, including prominent asset managers like BlackRock. The SEC is expected to rule on the following proposals: ark It was listed as 21 shares until January 10th, raising industry expectations.
Bloomberg analysts estimate a 90% chance of approval, but former SEC staffer John Reed Stark remains skeptical, labeling such optimism “absurd.”