The
US Securities and Exchange Commission (SEC) is actively engaging with asset
managers in anticipation of a crucial decision on the approval of a bitcoin
exchange-traded fund (ETF), as revealed in memos released this week.
In
a memo, the SEC disclosed a recent meeting with Grayscale on Thursday to
discuss the potential transformation of the Grayscale Bitcoin Trust into an
ETF. Grayscale previously faced resistance from the SEC on this matter, but
after challenging the decision in court, they emerged victorious.
Additionally,
SEC officials held discussions with representatives from BlackRock and Nasdaq
on Wednesday, as outlined in a separate memo. BlackRock had submitted a filing
for a bitcoin ETF in June, and other asset management firms followed suit.While
the SEC retains the authority to deny crypto ETFs, many experts in the industry
anticipate the launch of such funds in the U.S. early next year. The SEC has
postponed decisions on several bitcoin funds recently, possibly aiming to
address multiple applications simultaneously.
Despite Gary Gensler’s, the Chair of the SEC, outspoken criticism of cryptocurrencies, he has
expressed a willingness to consider his staff’s input on a potential bitcoin
ETF in recent public statements.
Grayscale‘s strategic
move was highlighted by the recent hiring of John Hoffman, an executive from Invesco ETF, as the Managing Director. Hoffman will head distribution and strategic
partnerships for Grayscale, indicating the crypto asset manager’s preparedness
to launch the fund if it secures approval.
The
market’s growing confidence in the eventual approval of a bitcoin ETF seems
to be influencing the price of bitcoin positively. On Thursday, the
cryptocurrency was trading above $37,000, marking a significant rebound from
its late-summer dip to around $26,000.
Another meeting yesterday b/w Grayscale & SEC…
Absolutely fascinated to see how this all plays out, especially timing of GBTC uplisting vs launch of competing spot btc ETFs.
Btw, if you’re tired of me tweeting about this, good news is I think we’re approaching finish line. pic.twitter.com/lsngOSe57z
— Nate Geraci (@NateGeraci) December 1, 2023
Grayscale’s
Amended Filing
Finance Magnates reported earlier
that Grayscale
had submitted an amended filing for its forthcoming spot Bitcoin
ETF to the SEC on November 22. The filing has been seen as a routine step for firms that have met
reporting requirements. Grayscale’s ETF proposal involves converting an
existing investment vehicle, and recent discussions with the SEC and NYSE Arca
indicate ongoing dialogue regarding the ETF’s potential listing.
A
recent ruling by a three-judge panel of the District of Columbia Court of
Appeals favored Grayscale, asserting that the SEC made an error in rejecting the
proposed Bitcoin ETF without a clear explanation. Following this, Grayscale
urged the SEC to review and approve its ETF application, emphasizing the
optimal use of resources in a letter from its law firm.
The
US Securities and Exchange Commission (SEC) is actively engaging with asset
managers in anticipation of a crucial decision on the approval of a bitcoin
exchange-traded fund (ETF), as revealed in memos released this week.
In
a memo, the SEC disclosed a recent meeting with Grayscale on Thursday to
discuss the potential transformation of the Grayscale Bitcoin Trust into an
ETF. Grayscale previously faced resistance from the SEC on this matter, but
after challenging the decision in court, they emerged victorious.
Additionally,
SEC officials held discussions with representatives from BlackRock and Nasdaq
on Wednesday, as outlined in a separate memo. BlackRock had submitted a filing
for a bitcoin ETF in June, and other asset management firms followed suit.While
the SEC retains the authority to deny crypto ETFs, many experts in the industry
anticipate the launch of such funds in the U.S. early next year. The SEC has
postponed decisions on several bitcoin funds recently, possibly aiming to
address multiple applications simultaneously.
Despite Gary Gensler’s, the Chair of the SEC, outspoken criticism of cryptocurrencies, he has
expressed a willingness to consider his staff’s input on a potential bitcoin
ETF in recent public statements.
Grayscale‘s strategic
move was highlighted by the recent hiring of John Hoffman, an executive from Invesco ETF, as the Managing Director. Hoffman will head distribution and strategic
partnerships for Grayscale, indicating the crypto asset manager’s preparedness
to launch the fund if it secures approval.
The
market’s growing confidence in the eventual approval of a bitcoin ETF seems
to be influencing the price of bitcoin positively. On Thursday, the
cryptocurrency was trading above $37,000, marking a significant rebound from
its late-summer dip to around $26,000.
Another meeting yesterday b/w Grayscale & SEC…
Absolutely fascinated to see how this all plays out, especially timing of GBTC uplisting vs launch of competing spot btc ETFs.
Btw, if you’re tired of me tweeting about this, good news is I think we’re approaching finish line. pic.twitter.com/lsngOSe57z
— Nate Geraci (@NateGeraci) December 1, 2023
Grayscale’s
Amended Filing
Finance Magnates reported earlier
that Grayscale
had submitted an amended filing for its forthcoming spot Bitcoin
ETF to the SEC on November 22. The filing has been seen as a routine step for firms that have met
reporting requirements. Grayscale’s ETF proposal involves converting an
existing investment vehicle, and recent discussions with the SEC and NYSE Arca
indicate ongoing dialogue regarding the ETF’s potential listing.
A
recent ruling by a three-judge panel of the District of Columbia Court of
Appeals favored Grayscale, asserting that the SEC made an error in rejecting the
proposed Bitcoin ETF without a clear explanation. Following this, Grayscale
urged the SEC to review and approve its ETF application, emphasizing the
optimal use of resources in a letter from its law firm.
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- Source: https://www.financemagnates.com//cryptocurrency/crucial-bitcoin-etf-decision-looms-as-sec-engages-asset-managers/
