The SEC is reassessing spot Bitcoin ETF applications in the wake of the landmark court decision on Grayscale’s bid to convert its Grayscale Bitcoin Trust (GBTC) into an ETF. SEC Chair Gary Gensler revealed in a CNBC interview that the regulator is scrutinizing “between eight and a dozen filings,” revisiting its stance following recent court rulings in the District of Columbia.
Gensler underscored his neutrality, stating, “I refrain from forming preconceptions,” and reaffirmed the SEC’s dedication to adhering to laws enacted by Congress and clarified by the courts. Referring to the crypto space as a “Wild West,” he voiced apprehensions regarding violations of securities laws, fraudulent activities, and the presence of unscrupulous entities in the industry. Gensler drew attention to the insufficient foundational information available on numerous crypto projects and censured the mingling and conduct of intermediaries on crypto exchanges.
Historically, the SEC has rejected all spot Bitcoin ETF applications. However, the October court order mandating a review of Grayscale’s application brought a potential shift. The SEC is reportedly engaged in discussions with various applicants, including Grayscale, BlackRock, Fidelity, and Franklin Templeton. BlackRock recently amended its application based on SEC meetings, enhancing accessibility for Wall Street banks through risk shifting to crypto market makers.
Positive sentiment is on the rise in the cryptocurrency community as approval for a spot Bitcoin ETF seems imminent, fueled by optimism from analysts at Bloomberg and JP Morgan who foresee potential approvals in January. However, JP Morgan cautions that even if approved, the impact on the crypto market may be limited, with expectations of only a modest influx of fresh capital.