TLDR Summary:
The Securities and Exchange Commission (SEC) may approve spot bitcoin exchange-traded funds (ETFs) today. The potential approval follows the launch of bitcoin futures ETFs, BlackRock entering the market, and Grayscale’s legal victory over the SEC. Industry experts believe that the SEC could allow bitcoin ETFs to trade as early as Thursday. The SEC had asked firms to update incomplete language in their registration statements by Monday. Several firms, including BlackRock, Ark Invest, and 21Shares, revealed new intended fees for their proposed products on Wednesday. The SEC’s former chair, Jay Clayton, stated that spot bitcoin ETF approval seems “inevitable.” The bid for a spot bitcoin ETF began with the Winklevoss twins in 2013, and after years of unsuccessful attempts, SEC Chair Gary Gensler expressed favorability toward funds limited to holding bitcoin futures contracts. ProShares became the first to offer a bitcoin futures ETF in October 2021. Grayscale’s proposed conversion of its Bitcoin Trust to an ETF was denied by the SEC but ruled in favor of Grayscale in August 2022. BlackRock’s entrance into the market and ongoing dialogue and amendments to spot bitcoin ETF proposals indicate a potential shift in the SEC’s stance. However, the SEC clarified that it has not approved spot bitcoin ETFs despite an account claiming otherwise.
Important Key points:
1. The Securities and Exchange Commission (SEC) could approve spot bitcoin ETFs today, with industry watchers and executives expecting a positive outcome despite the SEC’s history of blocking such funds.
2. The launch of bitcoin futures ETFs, the involvement of BlackRock, and Grayscale’s legal victory over the SEC have all played a role in bringing us to this point and have made a difference in their own way.
3. The ongoing dialogue between fund issuers and the SEC, as well as the recent updates to registration statements and proposed fees, suggest a potential breakthrough in the approval of spot bitcoin ETFs.