in a recent interview with CNBCChairman of the Securities and Exchange Commission (SEC) Gary Gensler mentioned that the Commission is taking a “new look” at the Spot bitcoin ETF Pending Applications. His comment suggests that the SEC might be trying to do things the right way now despite crypto/sec-announcement-crypto/#:~:text=What%20The%20SEC’s%20Latest%20Announcement%20Means%20For%20The%20Crypto%20Industry,-by%20Scott%20Matherson&text=A%20recent%20announcement%20by%20the,actions%20have%20had%20on%20it.” rel=”nofollow noopener” target=”_blank”>any reservation Gensler or the Commission could have on the crypto industry.
Gensler's Comment Suggests SEC's Hands Are Tied
Gensler stated that the SEC was taking a “new look” at these Spot bitcoin ETF applications due to the court decision in the case of gray scale. He referred to the fact that the Commission had in the past rejected similar requests but had had to bitcoin-news/sec-prove-bitcoin-is-not-manipulated/” rel=”nofollow noopener” target=”_blank”>reconsider your position after the court's intervention.
In the Grayscale case, the Court adopted the asset manager's argument that the spot and futures markets are correlated. As such, this has forced the SEC to take another look at Grayscale's application (and possibly others), as it can no longer reject these applications in the bitcoin-news/sec-prove-bitcoin-is-not-manipulated/” rel=”nofollow noopener” target=”_blank”>fraud and manipulation reasons.
Gensler once again took the opportunity to clarify his reservations about the crypto industry. According to him, there is a lot of non-compliance in the sector. This includes failure to comply with securities laws, which he claims are there to protect the interests of investors. The SEC Chairman also mentioned that there is a lot of fraud and bad actors in the cryptocurrency field.
Regardless of their reservations, those waiting for a bitcoin spot ETF to be established bitcoin/bloomberg-spot-bitcoin-etf/#:~:text=Bloomberg%20Analyst%20Predicts%20Likelihood%20Of%20A%20Spot%20Bitcoin%20ETF%20By%20January%202024,-by%20Scott%20Matherson&text=Following%20notable%20changes%20to%20the,as%20early%20as%20next%20year” rel=”nofollow noopener” target=”_blank”>approved in January However, Gensler will be encouraged to mention that these pending applications are currently in process. Recent events suggest that this process appears to be going well and optimism continues to rise.
One of the most recent events turns out to be how four broadcasters came together with the two divisions of the SEC responsible for approving these funds. Many believe this means the Commission is more open to approval as long as there is strict compliance by these issuers.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2023/12/Bitcoin-Spot-ETF-Why-SEC-Chief-Gary-Gensler-Is-Taking" alt="Tradingview.com bitcoin Price Chart” width=”3266″ height=”1530″/>
btc price rises above $42,000 | Source: BTCUSD on Tradingview.com
BlackRock meets with the SEC for the fourth time For bitcoin ETFs
in a mail on its platform X (formerly Twitter), Eric Balchunas, Bloomberg analyst highlighted the fact that the global asset manager, bitcoin/blackrock-false-bitcoin-spot-etf/” rel=”nofollow noopener” target=”_blank”>Black Rock, met again with the SEC regarding its Spot bitcoin ETF application. However, this meeting was different as it was not the “normal team.” Instead, it was more of the asset manager's public policy staff meeting with Gensler's staff.
There is a belief that the discussion could have centered on BlackRock's insistence on offering a model in kind rather than a cash creation model. The Commission appears to be in favor of the latter and seeks to make all issuers of a Spot bitcoin ETF comply with this. The analyst had even implied that the Commission will only be able to approve those that meet this requirement.
Featured image from Bankrate, chart from Tradingview.com
