Gensler says SEC is reviewing Bitcoin ETF applications

SEC continues to study the court ruling in the Grayscale case, as well as numerous applications for spot Bitcoin-ETF. This was stated by the agency’s head Gary Gensler during a hearing in Congress, The Block.

Thus the official responded to a question from Senator Bill Hagerty, who asked about the criteria for approving the mentioned product.

What questions do you still need answers to from issuers about the market and/or market infrastructure for this to happen? — the lawmaker said.

Earlier Bloomberg analysts James Seyffart and Eric Balchunas estimated the probability of launching a spot Bitcoin ETF by the end of 2023 at 75%. The experts raised the odds after Grayscale’s legal victory against the SEC.

Thus far the regulator has issued no approvals for launching spot ETFs on digital gold. The Commission has carved out an exception for such products based on Bitcoin futures from ProShares and Valkyrie Investments.

On August 31 the agency delayed the decision on the applications at least until mid-October.

Earlier this week, a proposal to launch a spot Bitcoin ETF was filed by Franklin Templeton.

In September Grayscale asked the SEC to approve the product expeditiously. The company sent the regulator the application to convert GBTC into an exchange-traded fund as early as October 2021.