ETF Bitcoin Spot: SEC's Back Against the Wall? The Crypto Regulator Faces Optimism

Thu 12 Oct 2023 ▪ 3 min of reading ▪ by Eddy S.
Getting informed Crypto regulation

The race for the approval of a Bitcoin Spot ETF is gaining ground in the United States. Faced with pressure from legislators, the SEC, the crypto market regulator, could soon put an end to the suspense and make a final decision.

crypto etf bitcoin spot

SEC Cornered, Legislators Tired of Waiting

Numerous requests for the approval of a Bitcoin ETF are flooding the crypto regulator. However, the SEC continues to prolong the suspense, and U.S. legislators have had enough. They are demanding that the SEC make a decision quickly.

But not everyone is so accommodating, as Grayscale, which has taken legal action against the agency, is demanding swift approval of its Bitcoin ETF. Following this, things may be on the verge of changing, as the SEC shared comments with several issuers on their S-1 filings a few weeks ago.

According to messages from Eric Balchunas, Ark Investment has amended its Bitcoin Spot ETF prospectus. Most likely, these significant updates address the regulator’s concerns about net asset value (NAV) calculations. According to the prospectus, NAV is not in accordance with generally accepted accounting principles.

As a result, the company founded by Cathie Wood had to explain that the trust’s assets and those of its custodians are distinct from those of clients and the company. In other words, the crypto assets are in different Bitcoin wallets. In clearer terms, these changes suggest a positive step towards SEC approval, especially after Grayscale’s victory.

Crypto, the Bitcoin Spot ETF should soon see the light of day!

The SEC has a knack for dragging things out when they don’t go in its favor. But in the current case, there is a good chance that the crypto regulator will make a decision quickly. Indeed, Grayscale’s recent victory over the SEC has rekindled hope for the approval of a Bitcoin Spot ETF.

According to analysts, there is a 75% chance that the agency will make a positive decision this year and a 95% chance by the end of next year. However, Balchunas points out that there may still be further discussions required on certain details.

The approval of a Bitcoin Spot ETF seems to be on the path to realization. The crypto community is optimistic and estimates a very high percentage. However, even though the SEC appears to be cornered, it is essential to remember that it still holds the power. Therefore, it could spring a surprise and once again delay its decision.

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Eddy S. avatar
Eddy S.

Le monde évolue et l'adaptation est la meilleure arme pour survivre dans cet univers ondoyant. Community manager crypto à la base, je m'intéresse à tout ce qui touche de près ou de loin à la blockchain et ses dérivés. Dans l'optique de partager mon expérience et de faire connaître un domaine qui me passionne, rien de mieux que de rédiger des articles informatifs et décontractés à la fois.


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.