Gary Gensler, current chairman of the US Securities and Exchange Commission (SEC), hinted at a possible change in the SEC's outlook regarding spot bitcoin exchange-traded fund (ETF) applications during a interview with CNBC.
In the CNBC interview, Gensler revealed that the SEC is actively reconsidering its approach to detecting bitcoin ETF applications. “And as you know, we had denied several of these requests in the past, but the courts here in the District of Columbia intervened on it,” Gensler said. “And so we're taking a fresh look at this based on those court rulings.”
A bitcoin spot ETF differs from its futures-based counterpart in that it allows investors direct exposure to bitcoin without relying on futures contracts. This distinction could potentially facilitate easier access to btc for traditional investors seeking exposure.
The SEC has historically maintained a negative approach to approving bitcoin spot ETFs due to concerns around market manipulation, investor protection, and regulatory compliance. Gensler's acknowledgment of the SEC's reassessment suggests a willingness to explore and potentially accept approval of a spot bitcoin ETF, marking a potential shift in the regulatory landscape.
However, specific details regarding the potential timeline or criteria for approval of spot bitcoin ETFs remain undisclosed as the SEC continues its exhaustive review process. James Seyffart, Bloomberg ETF Analyst notedin early December that the next window for potential ETF approvals is January 5-10, 2024.
“This actually means that any potential approval order will arrive on Monday, January 8, Tuesday, January 9, or Wednesday, January 10,” Seyffart explained further. “Mark your calendars, people.”
As the SEC reassesses its stance, the bitcoin industry eagerly awaits new developments regarding the potential approval of bitcoin spot ETFs, which could significantly impact broader adoption and acceptance of btc among institutional and retail investors.
