SEC’s Bitcoin ETF Review Advances with New Meetings with Industry Giants

The U.S. Securities and Exchange Commission (SEC) is actively progressing with its review of Bitcoin ETF applications, having held significant meetings with major applicants Grayscale and BlackRock on December 19, 2023. These meetings are part of an ongoing series of high-level discussions, fueling optimism in the financial community about the potential approval of a spot Bitcoin ETF.

Grayscale’s Intensive Dialogue with SEC on Proposed Spot Bitcoin ETF

Grayscale’s recent meeting with the U.S. Securities and Exchange Commission (SEC) focused on a pivotal rule change proposal that could enable NYSE Arca to list and trade shares of Grayscale’s anticipated spot Bitcoin ETF. This meeting saw the participation of key representatives from Grayscale, NYSE Arca, and Davis Polk, a legal firm. Michael Sonnenshein, the CEO of Grayscale, was also in attendance, marking a significant moment in the ongoing discussions.

This meeting represents Grayscale’s sixth interaction with the SEC and the fourth within a single month, highlighting the intensifying nature of these discussions. The SEC’s records also show Grayscale’s two meetings with Coinbase representatives in 2022, underscoring the sustained effort in pushing for the spot Bitcoin ETF.

Grayscale’s journey towards a spot Bitcoin ETF gained momentum in August 2023 following a court ruling that compelled the SEC to review its application. This led to a series of subsequent meetings. Grayscale has been vocal about the potential for approval, with recent updates on its website indicating optimism as of December 1.

BlackRock’s Continued Engagement with SEC Over Proposed Bitcoin ETF

In another similar development, BlackRock held a meeting with the U.S. Securities and Exchange Commission (SEC) regarding a rule change that would allow Nasdaq to list and trade shares of BlackRock’s iShares Bitcoin Trust. This meeting included various representatives from both BlackRock and the Nasdaq Stock Market.

This latest interaction marks BlackRock’s fifth meeting with the SEC within a month, starting from November 20, demonstrating the company’s proactive approach in pursuing the Bitcoin ETF. Unlike previous notices, the specific details of the discussions in this latest meeting were not disclosed.

Past meetings between BlackRock and the SEC delved into the nuances of cash and in-kind redemption and creation models for the ETF, with BlackRock recently updating its application to initially adopt a cash model for the ETF.

Amid these ongoing discussions, many industry experts anticipate the approval of a spot Bitcoin ETF by January 10, 2024. This expectation is fueled by a decision deadline on an application from Ark and 21Shares, coupled with recent meetings and amendments in filings by various applicants.

Despite this, it is important to note that the SEC has yet to approve a spot Bitcoin ETF, and while the anticipation is high, approval is not guaranteed. The series of meetings and the rapid developments in applications highlight the growing interest and evolving regulatory considerations in the cryptocurrency ETF space.