The Securities and Exchange Commission (SEC) has started discussions with Grayscale Investments regarding its proposed spot Bitcoin BTC/USD ETF.
What Happened: According to a report by CoinDesk, the SEC has initiated talks with Grayscale on its application to transform its GBTC trust product into a spot Bitcoin Exchange-Traded Product (ETF). The crypto sector is keenly awaiting the SEC’s approval of such ETF applications, as it is seen as a key event that could expand retail investors’ access to digital assets.
Grayscale has been in regular communication with the SEC’s Division of Trading and Markets and the Division of Corporation Finance, following its legal victory in court. Previously, the SEC had rejected Grayscale’s application for an ETF dealing directly with cryptocurrencies, which led to a federal court dispute. The court eventually sided with Grayscale, ruling that the SEC’s denial was arbitrary and capricious.
See Also: ‘Every Dog Has Its Day’: Crypto Analyst Predicts Dogecoin To Skyrocket 140% By End Of 2023
Why It Matters: Grayscale’s Chief Legal Officer, Craig Salm, affirmed their intent to foster a positive relationship with the Trading and Markets division, but he did not reveal any details about their discussions. Despite certain unresolved issues, Salm pointed out that progress is being made in the SEC’s deliberations on other Bitcoin ETF applications, including those from financial giants BlackRock and Fidelity.
“Right now we’re just laser-focused on constructively reengaging with Trading and Markets,” said Salm, adding “There are still things that have to be worked through,” Salm said in an interview, also noting that others among the applicants for bitcoin ETFs – a group that includes financial giants BlackRock and Fidelity – seem to be making progress in SEC talks with their own registrations. “Overall, it’s been good engagement, and it’s a matter of when, not a matter of if anymore.”
Price Action: At the time of writing, BTC was trading at $35,259.55 up 3.69% in the last 24 hours, according to Benzinga Pro.
Photo via Shutterstock.
This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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