The Securities and Exchange Commission (SEC) chief, Gary Gensler, may change his stance on approving Spot Bitcoin ETFs. In a recent interview with CNBC, Gensler mentioned that the courts of Washington DC have provided their input on the matter, following multiple rejections of similar applications in the past.
The SEC currently has several filings on its desk, with BlackRock being the largest applicant. BlackRock is the world’s largest asset manager, overseeing over $9 trillion in assets. Other notable applicants include Valkyrie Investments, ARK Invest, Grayscale, and Fidelity.
Gensler had previously stated that his decision regarding crypto investments, including Bitcoin, would not change as he considered them to be risky. However, in late September, the SEC announced that it needed more time to consider the rule change, setting a deadline of January 10, 2024, for approval or disapproval.
While Gensler’s decision may not change, the influence of BlackRock cannot be underestimated. The financial giant has a track record of getting ETFs approved, with 575 approvals and only one rejection. The SEC is currently in negotiations with BlackRock, focusing on technical details such as custody agreements, creation and redemption mechanisms, and investor risk disclosures.
BlackRock has revised its spot Bitcoin ETF application to allow Wall Street banks to participate by creating new fund shares using cash instead of cryptocurrency. This revision is significant as it enables banks facing restrictions on holding cryptocurrencies to be part of the spot Bitcoin ETF.
The revised application also addresses concerns about market manipulation and investor protection by providing a detailed description of the asset manager’s redemption mechanism. If the spot Bitcoin ETF is approved, it could have a significant impact on the BTC price, potentially pushing it above $50,000 in 2024.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | |
| Sentiment | positive |
| Relevance Score | 1 |
| People | Gary Gensler |
| Companies | BlackRock, Grayscale, ARK Invest, Fidelity, Valkyrie Investments, SEC |
| Currencies | Bitcoin, US Dollar |
| Securities | None |
