SEC Now Reviewing ETF Applications Based on Court Rulings: Gensler
SEC Chair Gensler is open to Bitcoin ETFs, with 8-12 under review. Concerns over the crypto industry's compliance. Bloomberg sees Bitcoin rising.
Chairman of The U.S. SEC, Gary Gensler, has shown openness to Bitcoin spot ETFs, hinting that there could be changes after recent court rulings. In a CNBC interview, he discussed the SEC's review of these ETFs based on recent court decisions.
The SEC is considering 8-12 applications for Bitcoin spot ETFs, Gensler stated. He explained that they are now reviewing these applications based on court guidelines. When the interviewer asked questions about the Grayscale application, Gensler gave an unclear response to avoid answering.
Gensler also voiced his concerns about the crypto industry in general, he talked about the issues with non-compliance, fraud, and bad actors in the industry. He stated that most crypto exchanges usually get involved in practices that are seen as illegal in other finance sectors in the United States.
Regarding Bitcoin ETF applications, Gensler didn’t list the companies awaiting a response from the SEC but people suspect that they include new entries like Pando Asset AG and Valkyrie's updated Bitcoin ETF application.
The SEC has reportedly been meeting with major players like Grayscale, Fidelity, and BlackRock, this is good news as it means that there’s a sense of urgency in making a Bitcoin ETF decision. A factor that could have caused this urgency is the potential early decision for BlackRock, whose deadline is in March 2024, and the SEC’s effort to not approve one ETF before the others; they aim to do this to ensure fairness among issuers.
Bloomberg analysts have predicted a bright future for Bitcoin, with Bitcoin currently trading at $42,715 and holding a market cap of over $836 billion. They foresee a "supercycle" that could push Bitcoin beyond $500,000, driven by investors' positive outlook and upcoming events like the Bitcoin halving in 2024 and ETF approvals.
