U.S. Securities and Exchange Commission Chairman Gary Gensler has indicated that there may be a change in the agency’s approach toward Bitcoin ETFs.
In a CNBC interview, Gensler said the U.S. Securities and Exchange Commission (SEC) was reexamining “eight to 12 applications” for spot Bitcoin ETFs, a move influenced by a recent District of Columbia court ruling.
Historically, the SEC has been reluctant to approve such proposals, citing a variety of concerns. But Gensler hinted at the change, attributing it to the judiciary. He avoided mentioning the grayscale case directly, but the context suggests there is a connection. Earlier this year, Grayscale won a legal battle with the SEC, resulting in a re-evaluation of its application to convert its Bitcoin trust into an ETF. This decision was not appealed by the SEC.
Grayscale’s progress, along with others hoping for ETF approval, has sparked optimism in the market. Bloomberg analysts James Seyffart and Eric Balchunas noted ongoing discussions between the SEC and Grayscale, indicating a joint effort to achieve regulatory compliance.
The Bitcoin ETF race has attracted a variety of players, including major asset managers like BlackRock. Expectations are high as the SEC is expected to decide on ARK and 21Shares’ proposals by January 10th. Bloomberg analysts estimate a 90% chance of approval, but skeptics like former SEC employee John Reed Stark consider such optimism “outrageous.”