July 16, 2024
Spot Bitcoin ETF Discussions Continue
Bitcoin News

Bitcoin ETF Discussions Intensify: SEC Engages Leading Asset Managers

The United States Securities and Exchange Commission recently engaged in fresh discussions with asset managers proposing a spot Bitcoin exchange-traded fund (ETF) in the U.S. This round of talks involved officials from Gary Gensler’s office. Court filings revealed that BlackRock representatives met with the regulator on Dec. 14 to deliberate on the proposed rule change enabling the trading of the crypto investment vehicle on major exchanges. According to Bloomberg ETF analyst Jayme Seyffart, this marks the third meeting between BlackRock and the SEC regarding the application.

In the lead-up, meetings between asset managers and the SEC intensified. On Dec. 8, Grayscale and Franklin Templeton met with regulators to discuss their applications, followed by Fidelity representatives a day later. Toward the end of November, Chair Gensler’s staff also engaged with the Hashdex team to address concerns regarding market manipulation and investor protections. The focus was primarily on the use of cash creations and redemptions, along with the acquisition of spot Bitcoin from physical exchanges within the Chicago Mercantile Exchange market.

Various prominent asset managers, including WisdomTree, BlackRock, Invesco, Fidelity, and Grayscale, are preparing to launch spot Bitcoin ETFs. Despite past rejections from the SEC, these firms are still pursuing their proposals. The regulator has postponed its forthcoming decisions to early January, coinciding with the latest deadlines for most applicants.

If approved, the largest cryptocurrency will be available for trading on major Wall Street exchanges, making Bitcoin accessible to a broader investor base supported by influential investment firms worldwide. Conversely, denial of approval could lead investment managers to appeal the ruling, prolonging the waiting period further.

A spot Bitcoin ETF directly mirrors the real-time market price of Bitcoin by holding the actual cryptocurrency. Its value corresponds to the current BTC price. On the other hand, a futures Bitcoin ETF invests in Bitcoin futures contracts, representing agreements on the future price of Bitcoin rather than holding the cryptocurrency itself. The SEC previously greenlit the first futures Bitcoin ETF in 2021.

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Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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