Speculations are rife that the SEC will consent to ETFs

There are speculations that the US Securities and Exchange Commission (SEC) will grant authorization to spot bitcoin exchange-traded funds (ETFs). On or before January 10, 2024, it is anticipated that it will approve several applications that are currently pending. Sam Enzer, a partner at the law firm Cahill Gordon & Reinel, attests to this.

As stated by Enzer, this was a long-awaited decision. This shift in perspective is ascribed to the SEC’s defeat in its argument against Grayscale in the GBTC spot ETF lawsuit, according to him. As per the decision rendered on August 29, 2023, by the US Court of Appeals for the District of Columbia Circuit, the SEC was urged to reconsider its refusal to permit Bitcoin Trust (GBTC) to convert it into a spot ETF. The judges were of the opinion that this action taken by the SEC was capricious.

The attorney in question was of the opinion that the principal financial institutions transmitting ETF applications had stated that the SEC obtained filings from credible sources. In addition to Fidelity, Blackrock, VanEck, Galaxy Digital, and Skybridge were among the firms that had accomplished this. Discussions took place regarding the SEC’s insistence that filing corporations utilize the cash-creates redemption module as opposed to the in-kind one. 

The attorney further stated that the US SEC would be open to holding discussions during the holiday week concerning redemption modules, provided that Commission officials prioritize the matter of granting their consent to spot ETFs. According to information disclosed by CoinGape, Grayscale, Blackrock, Fidelity, and Franklin Templeton have established communication with the Commission’s officers.

As per Eric Balchunas, a Bloomberg Intelligence Analyst, the ETF applicants are now preparing to receive signed agreements from the concerned authorities, which they hope will put a closure on the issue. However, the SEC has agreed to grant its consent, provided it is in favor of the cash creates module, along with the official agreements.