SEC Officials Revisit Bitcoin ETF Filing with Web 3.0

SEC Discusses Bitcoin ETF with BlackRock

The United States Securities and Exchange Commission (SEC) has held a new round of discussions with asset managers proposing a spot Bitcoin (BTC) exchange-traded fund (ETF) in the U.S., this time with officials from Gary Gensler’s office participating in the meetings.

Court filings show that representatives from BlackRock visited the SEC on Dec. 14 to discuss the proposed rule change that would enable the crypto investment vehicle to be traded on major exchanges. According to Bloomberg ETF analyst Jayme Seyffart, this is the third meeting between BlackRock and the SEC to review the application.

The SEC has been busy with meetings with asset managers in the previous weeks. On Dec. 8, Grayscale and Franklin Templeton also had meetings with regulators to go over their applications, a day after representatives of Fidelity appeared before the SEC.

In late November, Chair Gensler’s staff also met with the Hashdex team to address concerns over market manipulation and investor protections. The discussion focused on the use of cash creations and redemptions as well as the acquisition of spot Bitcoin from physical exchanges within the Chicago Mercantile Exchange market.

Spot Bitcoin ETFs

Several well-known asset managers are aiming to introduce spot Bitcoin ETFs, including WisdomTree, BlackRock, Invesco, Fidelity and Grayscale. The SEC has formerly refused similar requests. Now, the regulator is pushing its next verdicts to the beginning of January, when the majority of petitioners’ deadlines will reach its end.

If given the green light, the most important cryptocurrency will be traded on the significant exchanges of Wall Street, providing Bitcoin to a broader group of investors supported by the most influential investment companies. If denied, investment managers will likely appeal the ruling, which will prolong the waiting period.

A spot Bitcoin ETF directly follows the real-time market cost of Bitcoin, keeping the actual Bitcoin. Its worth mirrors the present price of BTC under its ownership. In contrast, a futures Bitcoin ETF invests in Bitcoin futures contracts, which are agreements on the future cost of Bitcoin, rather than holding the cryptocurrency itself. The SEC approved the initial futures Bitcoin ETF in 2021.