Key instructions:
- A mysterious post by SEC Chairman Gensler has sparked speculation hinting at a possible approval of a Bitcoin ETF.
- Analysts and experts are weighing the significance of Gensler’s communication and potential indicators pointing to the approval of a spot Bitcoin ETF.
Anticipation surrounding the U.S. Securities and Exchange Commission’s (SEC) approval of a spot Bitcoin exchange-traded fund (ETF) has put cryptocurrency markets and traditional financial services at risk. SEC Chairman Gary Gensler’s recent cryptic post about X sparked speculation that approval of a spot Bitcoin ETF was imminent.
Speculation arose after Gensler’s post.
Despite SEC Chairman Gary Gensler’s reticence on the topic of Bitcoin ETF approval, his recent posts regarding the SEC’s Trading and Markets Division have sparked feverish speculation. These unexpected moves occurred during key meetings such as the SEC-BlackRock meeting, the SEC’s verdict on Franklin Templeton, and Hashdex’s filing for a spot Bitcoin ETF.
Bloomberg ETF analyst Eric Balchunas highlighted Gensler’s video and said that while timing appears to be important, it is not unusual as each division of the SEC has gone through such communications. Balchunas downplayed the significance of the post and suggested there were other reliable indicators pointing to an imminent approval.
Expert insight into Gensler’s statement
Reacting to the mysterious video, VanEck and Tether advisor Gabor Gurbacs expressed concerns about relying on deciphering the signals of one individual to oversee the world’s largest market.
At the Healthy Markets Association conference on November 29, Gary Gensler responded to a question about the possibility of spot Bitcoin ETF approval despite previously rejecting several applications in this context, predicting the situation. I refrained from doing so.
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Indicators paving the way for spot Bitcoin ETFs
Investment company Grayscale Grayscale Bitcoin Trust (GBTC) made notable amendments to its contract not seen since 2018. This strategic adjustment appears to be consistent with a potential switch to a spot Bitcoin ETF.
The SEC’s accelerated update to Franklin Templeton ahead of the January 1, 2023 deadline signals a proactive stance. Nonetheless, Bloomberg’s Balchunas keeps the odds of approval at a promising 90%, with the next update on the likelihood of approval scheduled for January 10, 2024.