In a recent development, the U.S. Securities and Exchange Commission (SEC) is reportedly in discussions with multiple applicants seeking approval for spot Bitcoin exchange-traded funds (ETFs). FOX Business correspondent Charles Gasparino revealed insider information, stating that the SEC is holding a rare joint conference call with prospective Bitcoin ETF filers.
Unveiling SEC’s evaluation criteria
During the conference call, the SEC is said to be emphasizing the importance of a cash creation model among the applicants. FOX correspondent Eleanor Terret disclosed that the SEC had instructed the applicants to eliminate any references to in-kind redemptions from their filings. This strategic move aims to ensure a clear commitment to a cash-centric approach.
Market experts are closely monitoring these developments, speculating that the joint conference call might signal an imminent decision by the SEC on spot Bitcoin ETF applications. Notably, Jan. 10, 2024, has emerged as a pivotal date, with industry insiders and sources suggesting that the regulatory approval for a Bitcoin ETF is highly anticipated by this deadline.
Echoing these expectations, FOX Business has reported that sources close to various firms believe an ETF approval is likely by Jan. 10. This aligns with public knowledge of a deadline linked to an application from Ark Invest. The SEC’s active engagement with multiple applicants and updates to filings, particularly with industry giant BlackRock, contribute to the growing optimism surrounding a potential approval.
Legal ruling adds optimism despite historical trends
In a separate development, a legal ruling impacting Grayscale requires the SEC to conduct a review, though not necessarily an approval, of its ETF application. This ruling has injected further optimism into the market, suggesting a potential shift in the SEC’s approach.
Despite these positive indicators, it’s essential to note that the SEC has yet to approve any spot Bitcoin ETF. While widespread expectations point towards approvals, the regulatory body retains the authority to reject any application, and January could bring unexpected outcomes.
In summary, the SEC’s joint conference call with Bitcoin ETF applicants, coupled with the looming Jan. 10 deadline, has heightened anticipation within the crypto community. Market participants remain watchful for official announcements from the SEC as the industry navigates the evolving landscape of cryptocurrency regulations.