US Bitcoin ETF issuer talks with the SEC have progressed to key details. There is still widespread belief in the market that a Bitcoin ETF would provide new promising opportunities for investors. It’s an ideal vehicle for digital asset investments. However, the SEC has long been opposed to this ideal. Following that, stating that the product poses a risk to these investors.
Nonetheless, the SEC appears to be more open to issuer discussions. It happened following a court loss in August regarding Grayscale’s ETF application. According to the reports, these discussions have now centred on “substantive details.” Ultimately, discussions about things like customer arrangements and investor risk disclosures typically indicate that the application process is nearing completion.
A Hard-Fought Victory
The SEC’s long-awaited approval of a spot Bitcoin ETF would end a long-running legal saga in which the federal regulator initially rejected Grayscale Investments’ goal of converting an estimated $17 billion of GBTC into a spot ETF in June 2022. The SEC claimed at the time that “the proposal did not meet anti-fraud and investor protection standards.”
In August 2023, however, the U.S. Judge Neomi Rao of the Court of Appeals overturned the SEC’s initial decision. “Grayscale’s primary argument is straightforward: the Commission acted arbitrarily and capriciously by denying the listing of Grayscale’s proposed bitcoin ETP and approving the listing of materially similar bitcoin futures ETPs,” he said.
Conversations between the U.S., according to Reuters, US Bitcoin ETF issuer and SEC talk progress and asset managers seeking to launch Bitcoin exchange-traded funds (ETFs) have progressed to key technical details, indicating potential approval of these products.
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Discussions to Include Custody Arrangements
The discussions have now expanded to include custody arrangements, creation and redemption mechanisms, and investor risk disclosures. A potential Bitcoin ETF approval could provide investors with access to the regulated stock market, with initial demand expected to reach $3 billion.
Grayscale Investments, BlackRock, Invesco, and ARK Investments are among the 13 firms with pending ETF applications. The SEC has historically been wary of Bitcoin ETFs due to investor protection concerns. But now, it has engaged in substantive discussions in the aftermath of a court ruling in August that found its rejection of Grayscale’s ETF application to be incorrect.
JUST IN: Discussion between the SEC & Spot #Bitcoin issuers have advanced to key technical details, Reuters reports.
— Watcher.Guru (@WatcherGuru) December 7, 2023
Conclusion:
According to Reuters, the US Bitcoin ETF issuer and SEC talk progress represent a critical juncture. It’s crucial in the integration of cryptocurrencies into the mainstream financial framework. With potential approvals on the horizon, the Bitcoin investment landscape in the United States is set to undergo a transformation. It may provide new opportunities for investors and further legitimising digital assets in the financial sector.
US BITCOIN ETF ISSUER TALKS WITH SEC HAVE ADVANCED TO KEY DETAILS
Discussions between the 🇺🇸 SEC and asset managers hoping to list Bitcoin $BTC ETFs have advanced to key technical details, in a sign the agency may soon approve the products, industry executives said – Reuters
— Evan (@StockMKTNewz) December 7, 2023
