Gary Gensler, the current chairman of the United States Securities and Exchange Commission (SEC), has hinted at a potential change in the SEC’s view regarding Bitcoin spot 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 spotting Bitcoin ETF applications. “And as you may know, we had denied a number of these requests in the past, but the District of Columbia courts have weighed in on this,” Gensler said. “And so we’re taking a new look at the issue based on these court rulings.”
A spot Bitcoin ETF differs from its futures-based counterpart because it allows investors to gain direct exposure to Bitcoin without the use of futures contracts. This distinction could potentially make BTC easier for traditional investors looking for exposure.
The SEC has consistently maintained a negative approach toward approving spot Bitcoin ETFs due to concerns over market manipulation, investor protection, and regulatory compliance. Gensler’s acknowledgment of the SEC’s reassessment suggests a willingness to explore and potentially embrace approval of a spot Bitcoin ETF, marking a possible shift in the regulatory landscape.
However, specific details regarding the potential timeline or criteria for approval of spot Bitcoin ETFs remain confidential as the SEC continues its in-depth review process. James Seyffart, analyst at Bloomberg ETF notein early December, the next potential ETF approval window will be January 5-10, 2024.
“In reality, this means that any potential approval order will be issued either on Monday, January 8, or Tuesday, January 9, or Wednesday, January 10,” Seyffart explained. “Mark your calendars, people.”
As the SEC reevaluates its position, the Bitcoin industry looks forward to further developments regarding the potential approval of spot Bitcoin ETFs, which could have a significant impact on broader adoption and acceptance of BTC among investors institutional and individual.