The United States Securities and Exchange Commission (SEC) is poised to re-evaluate Grayscale’s petition for a Bitcoin Exchange-Traded Fund (ETF). This development follows a recent directive from the U.S. Court of Appeals, indicating a potential shift in the SEC’s stance toward cryptocurrency investments.
Trading volumes for Grayscale’s GBTC and ProShares’ BITO have experienced notable upticks, drawing significant interest from major corporations. The pivotal question at hand is whether the SEC will grant approval exclusively to Grayscale, or if all applicants will receive simultaneous authorization.
Overview of the Forthcoming Meeting:
The SEC has arranged a confidential meeting, convening senior officials, including Commissioners, legal experts, and recording secretaries. The meeting’s agenda encompasses critical subjects such as settlement claims, administrative proceedings, litigation resolutions, and issues pertaining to examinations and enforcement procedures. This underscores the SEC’s commitment to a comprehensive evaluation of Grayscale’s ETF proposal.
This recent development is an outgrowth of a substantial court order in late August, which endorsed the transformation of the Grayscale Bitcoin Trust (GBTC) into a Bitcoin ETF. The passage of the October 13 deadline has now established a clear timeline for the approval process of what could potentially be the inaugural U.S. Bitcoin ETF.
Diverse Perspectives:
Market observers are closely monitoring this unfolding situation, with some anticipating that the SEC may issue collective approvals for existing ETF applications. Grayscale’s application, bolstered by a favourable court order, stands out due to its fortuitous timing and regulatory disposition. Mike Novogratz, CEO of Galaxy Digital, is sanguine and envisions that the Bitcoin ETF could secure SEC endorsement this year.
However, there are concerns, voiced by figures such as Dave Nadig, that SEC Chair Gary Gensler might unexpectedly reverse his position, an action characterized as a “Gensler semi-comedic rug-pull.” Bloomberg’s ETF analysts also regard such a reversal as “remarkably capricious.”
