Summary
The US Securities and Exchange Commission (SEC) may not publicly vote on the approval of a spot bitcoin ETF, but this does not mean that the product won’t potentially start trading this week. The SEC’s next meeting is scheduled for January 11, one day after the deadline to approve or deny Ark and 21Shares’ proposal. Chair Gary Gensler could opt for a seriatim vote on bitcoin ETF applications, which allows for votes to be collected without publicly convening a meeting. The SEC has previously chosen not to conduct a vote on crypto ETFs and instead delegated authority to staff. However, individual commissioners can challenge matters of delegated authority, potentially lengthening the process. Commissioners have historically voted on some crypto ETFs, and in 2018, they unanimously voted to deny the GraniteShares and ProShares bitcoin ETFs. The SEC declined to comment on whether a vote will take place this week.
Key Points
1. The US Securities and Exchange Commission (SEC) may not publicly vote on the approval of a spot bitcoin ETF. However, this does not rule out the possibility of the product potentially starting trading this week.
2. SEC Chair Gary Gensler has the option to conduct a seriatim vote on bitcoin ETF applications, where votes are collected without publicly convening a meeting. It is reasonable to assume that Gensler will approve the circulation of a seriatim, but there is a possibility of a “desk drawer veto” if one commissioner holds onto a seriatim.
3. The SEC has previously chosen not to conduct a vote on crypto ETFs and delegated authority to staff instead. However, individual commissioners can challenge matters of delegated authority, which can lengthen the approval process. Commissioners have historically voted on some crypto ETFs, both approving and denying them.