SEC Chair Gary Gensler appears to be reconsidering his position on approving a spot Bitcoin ETF for American investors. While he hasn’t explicitly confirmed a change in stance, recent court rulings have prompted him to take a fresh look at the approval process.
Rethinking the Approach
During an interview with CNBC’s “Money Movers,” Gensler mentioned that there are currently between eight and twelve spot Bitcoin ETF filings under review. He emphasized his role as the chair of the commission, highlighting the need to avoid preconceived judgments.
“I think it’s between eight and a dozen filings. I’m chair of a commission. I’m not to prejudge anything. So, that’s going through the process right now. And as you might know, we had in the past denied a number of these applications, but the courts here in the District of Columbia weighed in on that. And so we’re taking a new look at this based upon those court rulings.”
The turning point came when the District of Columbia Court of Appeals ruled in favor of Grayscale’s proposed Bitcoin ETF in August. This decision was a significant win for the crypto industry, which had been striving for a decade to establish such investment products. Importantly, the SEC chose not to challenge the court’s decision, fueling speculation about a potential shift in its stance.
SEC’s Focus on Legal Framework
In his recent interview, Gensler refrained from mentioning Grayscale directly but emphasized the SEC’s commitment to operating within the framework of laws established by Congress and interpreted by the courts. He also warned investors about the prevalent noncompliance with securities laws aimed at ensuring informed investment decisions and protecting against fraud and manipulation.
Apart from Grayscale, several major asset management firms, including BlackRock, Fidelity, Invesco, VanEck, and Valkyrie, are actively competing to introduce a spot Bitcoin ETF. Although the approval process has experienced delays, experts anticipate that approvals are likely to be granted in early January 2024.
Grayscale’s Positive Outlook
Grayscale has been eagerly pursuing a spot Bitcoin ETF following its legal victory against the SEC. While specific timelines haven’t been disclosed, Michael Sonnenshein, the CEO of Grayscale Investments, expressed optimism about discussions with the SEC. He noted that the SEC’s inquiries indicated a willingness to engage on the matter and a desire to make progress in this area.
The crypto industry is closely watching as the SEC, under the leadership of Gary Gensler, reassesses its stance on spot Bitcoin ETFs. Recent legal victories and the agency’s willingness to revisit its previous decisions have raised hopes of a breakthrough in early 2024. As the competition among asset management firms intensifies, the future of spot Bitcoin ETFs in the United States remains a topic of great interest and anticipation.