The U.S. Securities and Exchange Commission (SEC) has multiple filings for potential bitcoin exchange-traded products (ETFs) currently under consideration, according to SEC Chair Gary Gensler. Here are the key points from the provided information:
- Number of Filings: The SEC has received eight to ten filings related to potential bitcoin ETFs for consideration. These filings are related to exchange-traded products tied to bitcoin, and they are currently under review by the SEC.
- Spot Bitcoin ETF Anticipation: The anticipation of approval for a spot bitcoin ETF has driven recent speculation in the Cryptocurrency is a form of digital or virtual currency that uses cryptography for security and operates independently of a central authority or traditional banking system. Cryptocurrencies leverage blockchain technology to gain decentralization, transparency, and immutability. Key Features: • Decentralization: Cryptocurrencies operate on a decentralized network of computers, meaning no central authority governs or regulates it. • Cryptography: Secure transactions and... market. A spot bitcoin ETF would allow investors to gain direct exposure to bitcoin through an exchange-listed product, potentially increasing demand for the cryptocurrency.
- Previous Approvals: Up until this point, the SEC has approved ETFs linked to bitcoin futures contracts, which are different from spot ETFs that hold the actual cryptocurrency.
- Cryptocurrency Market Impact: The news of potential spot bitcoin ETFs has influenced the cryptocurrency market, contributing to recent price fluctuations. Bitcoin’s price has been up nearly 14% for the week.
- Timing Uncertainty: Gensler did not provide specific timing for when these filings might be decided upon, as they all have different filing dates. The SEC will need to review and assess each application individually.
- Cathie Wood’s ARK Invest: Cathie Wood’s ARK Invest application is mentioned as one of the filings in the queue. The SEC has a 240-day comment period for this application that expires on January 10, 2024. The SEC will need to make a decision to either approve or reject this application by that date.
- Other Firms with Pending Applications: Several other firms, including BlackRock, Bitwise, WisdomTree, Fidelity, and Invesco, have also submitted applications for bitcoin-related funds in the United States. These applications are part of the growing interest in providing investors with more options for exposure to bitcoin.
- Background on Grayscale Investments: Anticipation for spot ETFs has increased following the SEC’s decision not to appeal a court ruling that found it was wrong to reject Grayscale Investments’ application to convert its existing bitcoin trust into a spot bitcoin ETF. The court has instructed the SEC to reconsider this decision.
The cryptocurrency market is closely monitoring the SEC’s decisions on these potential bitcoin ETFs, as the approval of a spot ETF is seen as a significant development that could make it easier for investors to access and invest in bitcoin.