YEREVAN (CoinChatper.com) — Gary Gensler’s stance on Spot Bitcoin ETFs could change. In the latest interview with CNBC, the SEC chief claimed that the courts of Washington DC “weighed in” on the subject after numerous rejections of similar applications in the past.
At the moment, the SEC has anywhere from 8-12 filings on its desk, the largest applicant being BlackRock, the largest asset manager globally, with over $9 trillion under its wing.
Will Gary Gensler Approve Bitcoin Spot ETF in 2024?
Other applicants include Valkyrie Investments, ARK Invest, the largest crypto investment vehicle, Grayscale, Fidelity, etc. Notably, Gensler commented earlier that his decision would not change, as he considered crypto investments including Bitcoin(BTC) to be risky. Then, in late September, the Commission claimed it needed more time to consider the rule change, using the last available delay.
The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change, as modified by Amendment No. 3, and the issues raised therein. Accordingly, the Commission… designates January 10, 2024, as the date by which the Commission shall either approve or disapprove the proposed rule change,”
the SEC announced.
However, players like BlackRock can be persuasive. The financial giant has famously gotten 575 ETFs approved against a single rejection. So, the SEC might choose to contend with the applicant and its trillions. The agency is currently in negotiations with BlackRock, as CoinChapter reported previously.
BlackRock Negotiations In Progress
The discussions focus on critical technical details. They involve several aspects such as custody agreements, creation and redemption mechanisms, and investor risk disclosures, essential for the approval process.
BlackRock has revised its spot Bitcoin ETF application to facilitate participation by Wall Street banks, allowing them to create new fund shares using cash rather than cryptocurrency. This revision is significant because it enables banks that face restrictions in holding cryptocurrencies to participate in the spot Bitcoin ETF.
The revised application includes a detailed description of the asset manager’s redemptions mechanism, aiming to address concerns about market manipulation and investor protection. While BlackRock’s potential impact on the cryptocurrency market is questionable, the spot Bitcoin ETF approval could push BTC price well over $50,000 in 2024.
