According to Bloomberg analysts, communication between fund managers and the SEC regarding a spot bitcoin ETF is becoming more productive.
Analysts pointed to Ark Invest and 21Shares adding pages of new text to prospectuses as a positive sign of constructive back-and-forth with regulators. This typically signals that an application is nearing approval.
Additionally, dialogue with Grayscale is expected to open up after the SEC declined to appeal a court decision involving Grayscale’s proposed bitcoin ETF.
Grayscale decision considered as a game changer
The decision was seen as a potential game-changer for spot crypto ETFs by establishing a precedent to guide future approvals. It hints at an evolving stance by the SEC. While the SEC could still appeal to the Supreme Court, analysts view this as unlikely. The developing dialogue and concession represent incremental but meaningful progress.
After years of fierce resistance, the SEC appears to be taking a more nuanced look at bitcoin ETF proposals on their individual merits. Continued constructive engagement between asset managers and regulators may finally pave the way for the SEC to grant a spot bitcoin ETF in the months ahead.