Top industry executives speculate that the United States could be on the verge of welcoming its first-ever spot-based Bitcoin exchange-traded fund (ETF).
According to a Reuters report today, the SEC and companies seeking to launch a spot Bitcoin ETF are now discussing the technical details for these products.
Notably, half a dozen industry executives told Reuters that the SEC may soon approve the launch of a spot Bitcoin ETF, given the advancement of talks.
Discussion Between SEC and Potential BTC ETF Issuers Advances
Per the report, the ongoing discussions between the SEC and firms seeking to launch a spot BTC ETF now cover specific technical details like custody arrangements, investor risk disclosures, as well as creation and redemption mechanisms.
Interestingly, Reuters pointed out that Cathie Wood, CEO of Ark Invest – one of the companies seeking to launch a spot Bitcoin ETF – also corroborated this claim during a Yahoo Finance interview last month.
The leading media outlet noted that Wood confirmed that the nature of the discussion with the SEC had changed. She speculated that the SEC would approve several spot Bitcoin ETF applications at once.
Quest to Launch a Spot Bitcoin ETF
For context, 13 asset management companies, including BlackRock, Fidelity, and Grayscale, have filed with the SEC to launch a spot-based ETF.
While the SEC has previously approved future-based Bitcoin ETFs, the regulator has continued to deny multiple applications to launch a spot version.
With the SEC denying Grayscale’s application to convert its Bitcoin trust into an ETF, the crypto asset management company took legal action against the regulator. Consequently, in August, an Appeal Court ordered the SEC to review the decision to deny Grayscale’s application.
Since the ruling, the SEC has been engaging with potential spot-based ETF issuers to get substantive details about the investment product.
Notably, approving a spot Bitcoin ETF could allow more institutional investors to gain access to the world’s largest cryptocurrency. Market analysts speculate that demand for BTC could surge as high as $3 billion in the first few days.
Citing SEC public memos, Reuters noted that firms seeking to launch these investment products have met with the regulator multiple times since September 2023.
It is worth mentioning that previous meetings were held with staff from the SEC’s Trading and Markets division. However, recent discussions have been with officials from SEC chair Gary Gensler’s office.
Furthermore, the SEC has intensified the pace at which it requests information from these firms in recent weeks. Notably, some companies seeking to launch these products have also updated tier filings to reflect some of the details requested by the SEC.
Earlier this week, BlackRock updated its filing, adding new languages, including anti-money laundering and compliance.
SEC Faces January 10 Deadline
Meanwhile, the Securities and Exchange Commission has a deadline of January 10 to issue its final decision regarding Ark Invest’s filing for a spot BTC ETF. Whether the SEC will approve Ark’s filing remains to be seen.
Although speculations are high that the SEC is on the verge of approving one or more applications for a spot Bitcoin ETF, the regulator has not publicly confirmed any of these claims.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
