Securities and Exchange Commission (SEC) Chair Gary Gensler offered a few new insights into the highly-anticipated approval process for spot Bitcoin Exchange-Traded Funds (ETFs) during a recent interview with Bloomberg TV. Without delving into specifics, Gensler stated that the SEC staff is “doing work on those multiple filings.” Moreover, the SEC Chair declined to offer any commentary on the regulatory body’s ongoing case against Grayscale Investments following last month’s court ruling, which the company chose not to appeal.
A maze of filings, yet silence on approval
Asset management giants such as BlackRock, Invesco, Valkyrie, and Fidelity are in a holding pattern as the SEC has instituted additional proceedings to determine the fate of their proposed spot Bitcoin ETFs. These proceedings suggest that the agency is opting for a meticulous approach, potentially adding at least another month to the already-in-progress review processes. Additionally, Gensler wouldn’t confirm if the SEC would approve a single fund first or wait for a comprehensive group approval.
In his discussion with Bloomberg TV, Gensler emphasized that multiple filings, perhaps as many as eight or ten, are currently under review. He explained that these are not just routine applications but involve significant deliberation from different divisions within the SEC. Specifically, the Division of Corporation Finance provides feedback, and the Division of Trading and Markets scrutinizes the filings in detail.
What makes this prolonged review particularly noteworthy is the history of the process itself. Gensler pointed out that it’s a “time-tested process” going back decades. He also pointed out that the SEC staff involved in these evaluations constitute the Disclosure Review Team. This team is responsible for responding and offering feedback to potential issuers of such financial products.
In the wider context, this ongoing review by the SEC does reflect broader questions about cryptocurrency regulation. While the world watches eagerly, the U.S. financial watchdog remains cautiously circumspect. The SEC has not set a definite timeline for these decisions, thus keeping the asset management firms and, indeed, the larger financial community in a state of anticipatory suspense.
Importantly, Gensler’s comments do underscore the sense of responsibility that the SEC feels in ensuring that any approved financial products meet stringent regulatory criteria. Hence, as the waiting game continues, all eyes remain on the SEC for the next chapter in this unfolding narrative.
