SEC Talks Bitcoin ETF With Big Players

Historically, the SEC has been hesitant to approve any spot cryptocurrency exchange-traded products, often delaying decisions on such applications to the maximum extent permitted. However, recent memos from November revealed that the SEC had meetings with representatives from both BlackRock and Grayscale, two major asset managers. Other firms like Hashdex, ARK 21Shares, Invesco Galaxy, VanEck, and Fidelity have also filed for spot BTC or Ether ETFs.

Adam Berker, senior legal counsel at Mercuryo, expressed optimism about the potential approval of these ETFs. He believes that green-lighting ETFs would be a significant boon to the crypto market, attracting more traditional finance (TradFi) investors to crypto assets due to the simplified access an ETF offers. The involvement of major players like Fidelity and BlackRock suggests that a considerable influx of institutional capital could enter the market upon ETF approval.

The final decision from the SEC on approving a spot Bitcoin ETF remains uncertain. Bloomberg ETF analyst James Seyffart has speculated that if the SEC were to approve such a product, it might simultaneously greenlight funds from multiple firms, potentially as early as January.

The SEC, under Chair Gary Gensler, has faced criticism from various quarters within and outside the crypto industry for its approach to regulating cryptocurrencies, particularly regarding the classification of certain tokens as securities. The commission is currently engaged in ongoing lawsuits with several notable entities in the crypto space, including Terraform Labs, Ripple, Coinbase, and Binance.