The price of Bitcoin (BTC) has soared high above $36,500, with anticipation for a spot Bitcoin ETF still a fundamental catalyst.
The wait for a spot in Bitcoin ETF in the U.S. continues. However, market participants speculate that the wait is nearing its climax, and the window to profit from any substantial BTC rise is closing.
Unsurprisingly, this positive market sentiment pushed BTC above $36,500 in the hours leading up to press time. The leading cryptocurrency is trading at $36,600 at the time of writing, with some positive news on the spot Bitcoin ETF front driving the rise.
Reports emerged Thursday that the United States Securities and Exchange Commission (SEC) has now entered into talks with crypto asset manager Grayscale regarding its spot Bitcoin ETF application. Recall that the regulator had originally denied Grayscale’s request to convert its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF.
However, following a court battle that ended in favor of Grayscale, the SEC has now opened talks with the asset manager to approve its spot Bitcoin ETF potentially.
Notably, Grayscale is currently communicating with the U.S. SEC’s Division of Corporate Finance and the agency’s Division of Trading and Markets regarding the spot Bitcoin ETF conversion.
While not disclosing details of the discussions, Grayscale’s legal counsel, Craig Salm, said it is now only a matter of when, not if, the SEC will eventually approve a spot Bitcoin ETF. Salm also reckoned that other competitors, such as BlackRock and Fidelity, have been making progress in discussions with the SEC regarding their respective applications.
SEC Adds Fuel to Bitcoin ETF Rumors
A new social media update by the U.S. SEC on Wednesday has further fueled speculation that a Bitcoin ETF is on the horizon. In a video, SEC Chairman Gary Gensler presented an overview of the work done by the agency’s Division of Corporate Finance.
Among other things, Gary Gensler sought to clarify that the division only maintains a “basic bargain of U.S. capital markets. Ultimately, he clarified that investors get to decide their risk appetite, even though the SEC mandates public companies to provide the requisite disclosures on their investment offerings.”
Our Division of Corporation Finance oversees and maintain a basic bargain in our capital markets: Investors get to decide what risks to take so long as public companies make complete & truthful disclosures.
More on the breadth of work our the Division does: pic.twitter.com/4mqlc2o1OP
— Gary Gensler (@GaryGensler) November 8, 2023
As noted by many industry participants, the SEC published a similar disclosure in the buildup to approving the first Bitcoin Futures ETF in 2021. Gensler’s mention of “rapidly evolving technology and business models” tends to allude to the digital assets industry and the potential approval of spot Bitcoin ETFs in the near future.