Reuters has reported substantial advancements in the dialogues involving the US Securities and Exchange Commission (SEC) and asset managers. These discussions revolve around the potential authorization of Bitcoin (BTC) exchange-traded funds (ETFs).
According to the publication, discussions between the SEC and asset managers “hoping to list Bitcoin exchange-traded funds (ETFs) have advanced to key technical details, in a sign the agency may soon approve the products.”
Currently, decisions from the SEC are being eagerly anticipated by thirteen firms, including Grayscale Investments, BlackRock, Invesco, and ARK Investments, all of whom have submitted applications for spot ETFs. Historically, the SEC has demonstrated resistance, primarily due to concerns about protecting investors.
Nonetheless, a significant shift in the SEC’s attitude was observed post the court ruling in August, which opposed the regulatory body’s decision to dismiss Grayscale’s application for a spot ETF. Reuters notes that industry executives and SEC public memos indicate that following the court’s ruling in favor of Grayscale’s bid to transform its bitcoin trust into an ETF, the SEC has been actively engaging with issuers on substantial details. These discussions typically take place “near the end of an ETF application process.”
The dialogues have spanned across different areas, encompassing topics like “custody arrangements; creation and redemption mechanisms; and investor risk disclosures,” as per an anonymous source who spoke to Reuters, given the confidential character of these discussions. Interestingly, the report suggests that a spot Bitcoin ETF might ignite a demand surge that could reach up to $3 billion within the initial few days.
The SEC has consistently expressed concerns about Bitcoin’s susceptibility to manipulation. Earlier discussions primarily revolved around this issue and were “mostly educational,” commented the anonymous source. However, there has been a significant shift in this stance. The high-level nature of these talks indicates that the SEC might be gearing up to “approve ARK’s application and likely some of the other 12 applications, in the New Year,” the insider noted.
In its report, Reuter also underscored that Cathie Wood, CEO of ARK, demonstrated a positive outlook during an interview with Yahoo Finance last month. She stated, “My guess is that we’ll have several ETFs approved at once, which will give investors the best opportunity to compare them.”
Price Action
As per the latest updates, BTC has experienced a slight decrease of 1.20% within the day, currently hovering around the mid $43K mark.
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