SEC, Stock Exchange Officials Meet Ahead of Potential Spot Bitcoin ETF Approval

Reporter and SEC logo with gavel

The U.S. Securities and Exchange Commission met with major exchanges yesterday to discuss the pending applications for Bitcoin spot exchange-traded funds, according to people familiar with the matter.

The SEC met with major exchanges on Wednesday to discuss the pending applications for Bitcoin spot ETFs, which would track the price of Bitcoin directly. The SEC could issue its decision as soon as this week, according to sources. A Bitcoin spot ETF would be a major milestone for the crypto industry, as it would provide investors with a simple and regulated way to access the largest cryptocurrency.

SEC Could Issue its Decision This Week

The SEC is expected to finalize its comments on the 19b-4 forms submitted by the issuers of the proposed ETFs, which would track the price of Bitcoin directly rather than through futures or other derivatives. The sources, who asked not to be identified because the talks are private, said the SEC could issue its decision as soon as this week.

Earlier, FOX Business reported that the SEC was likely to approve at least one Bitcoin spot ETF this week, citing unnamed sources. The report boosted the price of Bitcoin, which rose above $44,000 for the first time since March 2022.

A Milestone Case

A Bitcoin spot ETF would be a major milestone for the crypto industry, as it would provide investors with a simple and regulated way to access the largest cryptocurrency by market value. Several issuers, including VanEck, Valkyrie, and WisdomTree, have filed applications for Bitcoin spot ETFs, but none have been approved so far.

The SEC has been reluctant to approve crypto ETFs, citing concerns over market manipulation, fraud, and investor protection. However, the agency recently lost a court case against Grayscale Investments, the largest provider of crypto trusts, which challenged the SEC’s authority to regulate its products. The ruling could put pressure on the SEC to approve crypto ETFs, as it would create an uneven playing field for the industry.

The SEC did not immediately respond to a request for comment. Nasdaq, CBOE, and NYSE declined to comment.

Author: Jinka

Jinka is a self-trained crypto journalist, passionate about happenings in the industry.