As yet, the U.S. Securities and Exchange Commission (SEC) has not approved a Bitcoin ETF. But after a court victory by asset manager Grayscale, the tide seems to be turning.
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Fittingly, Grayscale Bitcoin ETF is trying the SEC again
For the crypto scene in the U.S., it’s only a matter of time before the Securities and Exchange Commission approves a Bitcoin ETF for the first time. The optimism is based on a court victory by asset manager Grayscale at the end of August, which the SEC did not appeal. Now Grayscale has followed up, announcing via blog post that it has submitted a new, abbreviated application to the SEC to convert its existing Bitcoin fund into an ETF.
The notice stresses striving for the implementation in cooperation with the SEC. So, at least for now, Grayscale does not want to unnecessarily further strain its relationship with the SEC. For years, the SEC has shot down applications for Bitcoin ETFs altogether, citing, among other things, manipulation-prone pricing and determination in Bitcoin (BTC). The court did not follow suit, referring to Bitcoin Future ETFs, which were already given the “green light” by the SEC as closely related financial products.
SEC chief Gary Gensler said in an interview with business news agency Bloomberg this week that he did not want to prejudge a decision. Gensler would not comment separately on the Grayscale Bitcoin ETF case. Instead, he recalled that the SEC has received “I think eight to ten” applications for bitcoin ETFs. These, he said, are now being reviewed by multiple divisions of the SEC in a decades-old practice. In the process, the “disclosure review team” would communicate with applicants and provide feedback.
Observers believe that the SEC can at best play for a time after losing the court battle. Presumably, the SEC will then wave through a whole series of Bitcoin ETFs in one fell swoop in the coming weeks or months, is the most common thesis. Among the applicants for Bitcoin ETFs are, in addition to Grayscale, BlackRock, Fidelity, and Invesco.
Conclusion: Possible Bitcoin ETFs electrify the markets
How important the topic of Bitcoin ETF is taken, shown in an episode from this week. For a short time, the portal Cointelegraph spread the breaking news that the iShare Bitcoin ETF had been approved by the SEC. Immediately, Bitcoin’s price curve shot up by nearly 10 percent – and corrected just as quickly when the Cointelegraph report proved to be false.
Experts expect tens of billions of dollars in capital inflows for Bitcoin once BTC ETFs provide a safe and convenient solution for investors. In such a scenario, Bitcoin could rally. But as mentioned, neither Grayscale nor any other financial company has the approval for the first Bitcoin ETF in their pocket yet.
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