After a year’s worth of stonewalling spot Bitcoin ETF applicants, the SEC may be taking a more laid-back approach toward their proponents.
Following a failed bid to block Grayscale from creating an ETF via lawsuit, Cathie Wood – the CEO of Ark Invest – stated that she had noticed a welcome change in the SEC’s behavior. Instead of outright refusing to consider applications, the regulator began asking questions about the proposed ETF, which she views as a positive sign.
“The fact that the SEC chose to ask questions is a change in behavior. Therefore, I do think hopes are rising that a – or a number of – Bitcoin ETFs will be approved.”
Mike Novogratz confirmed that the SEC asked similar questions about Galaxy Digital’s own proposed ETF. According to him, spot Bitcoin ETFs should be approved by the end of the year.
However, SEC chairman Gary Gensler remained tight-lipped when interviewed on the subject by Bloomberg Reporters.
In an interview with Bloomberg reporter Kailey Lenz – who also took the time to wish Gensler a Happy Birthday – the SEC chair stated that he and his team are currently reviewing eight to ten spot Bitcoin ETF applicants.
Here’s a short clip of @kaileyleinz asking Gensler about $GBTC and other spot #Bitcoin ETFs. Mostly non-answers in my opinion but does talk about the disclosure review team. We’ve had some insight into their process via the amendments from some of these filers in recent days pic.twitter.com/lIWZc74OAi
— James Seyffart (@JSeyff) October 18, 2023
According to Gensler, the applications are currently with the Corporate Finance Division, following the same process as many other investment funds over the decades.
“So it’s really the work of our Division of Corporation Finance that gives feedback, our Division of Trading and Markets, of course, looks at the filings. This is a time-tested process that goes back decades. The staff of the SEC, it’s called the Disclosure Review Team, but in that group, they respond and give feedback to potential issuers.”
When asked about the likelihood of the ETFs being approved, Gensler responded that he cannot comment on ongoing cases – and that he, personally, will not pre-judge the outcome of the process.
The short interview is largely in line with the most recent developments in the regulator’s attitude towards spot Bitcoin ETFs. After losing its court case against Grayscale last month, the SEC decided against appealing.
However, an approval of Grayscale’s fund has not been provided yet. If the above interview is any indication, it’s likely that multiple ETFs will be greenlighted or denied simultaneously within the coming months.
