Gary Gensler, the head of the Securities and Exchange Commission (SEC) in the United States, talked to Bloomberg on October 18 of this year about several upcoming spot Bitcoin (BTC) ETFs. He emphasized that he could not personally prejudge those proposals and chose not to respond to rumors that the SEC would simultaneously approve many spot Bitcoin ETFs. He did, however, acknowledge that the SEC is working on “multiple filings” right now and that different divisions are giving issuers input.
Even though Gensler takes questions on spot Bitcoin ETFs, people could not help but notice the cagey cadence of the SEC chairperson, with many pointing out that he is desperately trying to keep his cards close to his chest. The interview saw Gensler dodging some pertinent questions – curtly stating not to comment on certain issues. Approximately 10 Bitcoin exchange-traded fund (ETF) initiatives are presently awaiting a decision from SEC staff, Gensler said in his interview.
Keeping a Low Profile
Gensler refused to give any further information on whether or not dialogues between ETF issuers and the SEC have been fruitful. He simply referred to the tried-and-true method as a “time-tested process” that has been in use for years.
The SEC was given until October 13 to file an appeal of that court decision, but it appears the organization chose not to because no filings were made. In the interview, Gensler reaffirmed this, saying, “We didn’t appeal last Friday … I think that’s accurate.” In addition, he declined to speak on the topic of Grayscale’s legislation and whether or not it is still ongoing. Any more questions directed at him touching this subject failed to evoke any response as Gensler did not comment on the matter further.
Before he made any general remarks about ETFs, Gensler briefly discussed recent developments regarding Grayscale’s attempt to transform its GBTC fund into a Bitcoin spot ETF. In court in August, Grayscale was granted the chance to have the SEC assess its application. Though Gensler takes questions on spot Bitcoin ETFs, his words have remained unsatisfactory to all.
The Shadow of a Scandal
Gensler’s remarks come two days after a false report that attracted attention on social media claimed that the SEC had authorized BlackRock’s proposal for a spot Bitcoin ETF. Despite being fabricated and completely baseless, the rumor caused a spike in Bitcoin’s price above $30,000 before it fell to previous levels.
Reports say that the SEC shall not be obligated to approve the new fund, even if the agency is forced to examine Grayscale’s application. Furthermore, any ruling that favors Grayscale’s proposal may not necessarily favor bids for further spot Bitcoin ETFs. All of this information was finally revealed to the public after the interview in which Gensler took questions on spot Bitcoin ETFs.
After observing the event in which Gensler takes questions on spot Bitcoin ETFs, it has been speculated that the SEC may be behaving more leniently toward supporters of spot Bitcoin ETFs after a year of stalling their applications.
Cathie Wood, CEO of Ark Invest, has said that she had perceived a welcome deviation in the SEC’s behavior following an unsuccessful attempt to stop Grayscale from forming an ETF through litigation. She sees it as a good indicator that the regulator started asking questions about the new ETF rather than outright rejecting applications. She said, “The fact that the SEC chose to ask questions is a behavior change. Therefore, I do think hopes are rising that a – or several – Bitcoin ETFs will be approved.”
According to the CEO of Galaxy Investment Partners, Mike Novogratz, the SEC inquired about Galaxy Digital’s own proposed ETF. He asserts that by the year’s end, spot Bitcoin ETFs ought to be permitted.
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