Bitcoin ETF Update: SEC's Mysterious Stance on GBTC Sparks Speculation in Crypto Market – Coinpedia Fintech News
The crypto market went wild when a fake SEC approval for Blackrock’s Bitcoin ETF sent BTC to $30K! This frenzy highlights the massive demand for regulated Bitcoin. But SEC Chair Gary Gensler’s mysterious stance on GBTC adds an extra twist. Everyone’s wondering, “What’s the SEC up to?” Gensler’s careful words about GBTC have left us in suspense!
Legal Fraternity Analysing Gary Gensler’s Take on “GBTC”
Following the SEC’s unsuccessful appeal of its August court loss regarding Grayscale’s bid to convert its Bitcoin Trust (GBTC) into a spot exchange-traded fund (ETF), Grayscale and the crypto industry are contemplating their next moves.
SEC Chair Gary Gensler’s recent interview with Bloomberg has sparked speculation and scrutiny over his guarded stance regarding the status of the Grayscale Bitcoin Trust (GBTC) and other spot Bitcoin exchange-traded funds. Legal experts, notably financial lawyer Scott Johnsson, chimed in on the implications of a recent DC Circuit ruling and its potential impact on GBTC.
“So the tricky question is how does this order to vacate by the DC Circuit actually impact GBTC?”
Johnsson highlights the nuanced interpretation of “vacate” about the SEC’s statutory timelines, suggesting that without a clear disapproval order, GBTC could be “deemed approved,” albeit amidst legal complexity.
GBTC Legal Team Responded
Grayscale’s legal team has conveyed this interpretation to the SEC, urging recognition of their previous application. With the uncertain legal landscape, Johnsson speculates that Grayscale may wield this argument as leverage in ongoing negotiations with the SEC, even though a smoother path might involve refinement.
Gensler’s “Cagey” Response is Gaining Traction
On a controversial note, Gensler’s responses in the interview, characterized as “cagey,” refrained from providing direct insights into the matter. While he acknowledged the diligent review of multiple filings by agency staff, he avoided divulging specific details. Gensler emphasized his reluctance to judge outcomes, indicating a deliberate and cautious approach prematurely. Notably, he avoided outlining the SEC’s next steps following last month’s court decision, adding to the uncertainty surrounding GBTC’s status and the broader realm of spot Bitcoin ETFs.
Will GBTC Think of Amendments Alike Fidelity, If Rejected?
The twist in the story came with Fidelity, the asset management giant, submitting an amendment to its proposed spot Bitcoin ETF, the Wise Origin Bitcoin Trust, to the U.S. Securities and Exchange Commission (SEC). The filing outlines measures to protect customers’ Bitcoin in custody accounts and address risks associated with the uncertain regulatory waters of digital assets, among other considerations.
Moreover, Fidelity joins Ark Invest and Invesco in amending their spot Bitcoin ETF filings. Invesco resubmitted on October 11, with Ark Invest following suit a day later. These moves suggest a continued dialogue between potential ETF providers and the SEC, generating bullish sentiment among traders and market observers.
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