The Bitcoin community is keeping a close eye on the forthcoming Securities and Exchange Commission (SEC) closed-door meeting scheduled for November 2, as it could hint at the potential approval of a spot Bitcoin Exchange-Traded Fund (ETF). This speculation has been fueled by the SEC's recent decision not to challenge a court ruling that favored Grayscale's bid to convert its Bitcoin Trust into an ETF.
Scott Johnsson, an attorney from Davis Polk, drew attention to this meeting via a tweet on social media platform X (formerly known as Twitter), which will discuss administrative proceedings and litigation claims.
This anticipation comes in the wake of ProShares Bitcoin Strategy ETF (BITO), becoming the fastest ETF to reach the $1 billion mark. Before BITO's launch, a leak from an SEC meeting reported by Bloomberg suggested readiness to allow the first US Bitcoin futures ETF under mutual fund rules. Johnsson proposed that a similar leak might occur concerning Grayscale's spot Bitcoin ETF (TSX:EBIT).
Grayscale's unopposed aim to convert its GBTC into a spot Bitcoin ETF has captured significant attention. A pivotal question is whether the SEC will approve only Grayscale's application or extend its approval to other applicants simultaneously.
A host of prominent applicants, including BlackRock, Fidelity, Ark Invest, VanEck, and Valkyrie Funds, have submitted amendments to their applications. James Seyffart recently tweeted about Valkyrie Funds joining this amendment movement. Johnsson highlighted June 15, 2023 - when Blackrock (NYSE:BLK) lodged its spot ETF application - as a significant date on SEC chair Gary Gensler’s busy calendar.
Despite these promising developments, there are speculations about a possible unexpected rejection of spot Bitcoin ETF applications by Gensler, humorously referred to as a "Gensler semi-comedic rug-pull". While Johnsson acknowledges this possibility, he finds it hard to envisage.
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