[NEWS] SEC begins talks with Grayscale regarding conversion of Bitcoin spot ETF

It has been learned that the SEC (U.S. Securities and Exchange Commission) has begun discussions following a ruling that it must reexamine Grayscale's application to convert to a Bitcoin spot ETF.

On the 8th, CoinDesk, an overseas Web 3.0 media company that is a sister company of Grayscale, reported.

Citing sources, Grayscale has entered into discussions with both the SEC's Division of Trading and Markets and Division of Corporate Finance. Both SEC divisions will play a role in formulating and approving Grayscale's ETF application.

Grayscale operates Grayscale Bitcoin Trust (GBTC) and has had a good relationship with the SEC. However, last year Grayscale announced the conversion of GBTC to a Bitcoin spot ETF and applied to the SEC, but it was rejected. It immediately sued the SEC, calling this unjust.

In response, a three-judge panel of the U.S. Court of Appeals for the Washington, D.C. Circuit ruled in August that the SEC should reexamine the case. The court noted that there is no logical or physical difference between the SEC-approved Bitcoin futures ETF and the Bitcoin spot ETF.

Grayscale had updated its Bitcoin spot ETF application a few weeks before the announcement of the ruling in August.

SEC Chairman Gary Gensler said at a Senate Banking Committee hearing in September that the agency was "still considering the court's decision." He also said last month that the Division of Corporation Finance had provided feedback and the Division of Trade and Markets was reviewing the filing.

Grayscale's Chief Legal Officer Craig Ther said in an interview that the agency was "committed to constructively re-engaging with trading and the markets," adding, "There are still issues that need to be resolved. We have an overall good relationship with the SEC."

He also noted that Bitcoin ETF applications submitted by other financial institutions, including BlackRock and Fidelity, are also in the works, and that progress appears to be being made in negotiations with the SEC.

Bitcoin spot ETF may be approved as early as next week

Bloomberg analyst James Seyffart also commented on the 9th that the 12 Bitcoin spot ETFs currently being applied for "may be approved between November 8th and November 17th."

According to him, this is because the SEC set the comment period to 8 days when it extended the deadline for several ETF applications. He points out that while there is a possibility that all applications will be approved, at least the first nine can be decided at any time.

Reference:CoinDesk,posted by Seyffart
Image: Shutterstock

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