The SEC, historically cautious about approving spot-based crypto ETFs, is now delving into crucial technical details with potential issuers.<\/p>\n
According to a December 7 Reuters <\/em>report citing anonymous industry insiders, the top regulator has engaged with applicants on important details such as custody arrangements, creation and redemption mechanisms, and investor risk disclosures. Notably, high-profile asset managers, including BlackRock, Grayscale, Invesco, and 21 Shares, are believed to have met with SEC officials since September.<\/p>\n What\u2019s more, the report suggests that the SEC is carefully weighing the pending spot ETF applications on its desk rather than denying them outright like it has countless times in the past \u2014 often citing the possibility of Bitcoin market manipulation in its rejection of the investment vehicle. Notably, while the previous conversations focused on this manipulation concern and were mainly educational, the recent talks revolved around nuanced technical aspects, the people revealed.<\/p>\n Moreover, these recent meetings have involved staff in SEC boss Gary Gensler’s office \u2014 unlike in the past when the meetings were only with staff from the agency\u2019s trading and markets and corporate finance divisions.<\/p>\n The report further notes that the SEC\u2019s anti-Bitcoin ETF stance has shifted significantly following its earth-shattering loss in the Grayscale case back in August. \u201cBut after a court in August ruled the SEC was wrong to reject Grayscale\u2019s application to convert its bitcoin trust into an ETF, the SEC has been engaging with issuers on substantive details, some of which are usually discussed near the end of an ETF application process,\u201d as per the sources.<\/p>\n Growing anticipation that the SEC might soon greenlight one or a bunch of spot bitcoin ETF filings has been a considerable factor in the bellwether cryptocurrency\u2019s approximately 59% rally since October 1. That said, market observers have been keen for any signs of confirmation.<\/p>\n Purchasing and holding Bitcoin can be complicated for less tech-savvy investors. A spot Bitcoin ETF would enable everyday investors who want exposure to BTC to buy shares that closely track the crypto asset\u2019s price.<\/p>\n Several Wall Street giants have applied to the SEC to release their own Bitcoin ETF to U.S. investors. BlackRock and Bitwise recently updated their applications to answer additional questions presumably asked by the regulator in earlier discussions.<\/p>\n The market has previously assigned a probability of about 90% that the U.S. authorities will give the regulatory nod to such a spot crypto ETF by January 10, 2024.<\/p>\n![](\"https:\/\/zincable.com\/wp-content\/uploads\/2023\/10\/CB_AffiliateBanner_V3_728\u00d790.png\")
<\/p>\nSpot Bitcoin ETF Approval Imminent?<\/strong><\/h2>\n