The U.S. Securities and Exchange Commission (SEC) has engaged in another series of meetings with asset management firms seeking approval for spot Bitcoin exchange-traded funds (ETFs). This latest round of discussions included officials from SEC Chair Gary Gensler’s office.
Court documents reveal that the SEC met with representatives from BlackRock on Dec. 14 to deliberate on a rule change necessary for trading the crypto investment vehicle on major exchanges. Bloomberg ETF analyst Jayme Seyffart noted that this was BlackRock’s third meeting with the SEC regarding their application.
The frequency of meetings between the SEC and asset management firms has been increasing. On Dec. 8, both Grayscale and Franklin Templeton had discussions with the SEC, following a meeting with Fidelity representatives the day before.
In late November, Gensler’s team also convened with Hashdex to address issues related to market manipulation and investor protection, focusing on cash creations, redemptions, and acquiring spot Bitcoin from physical exchanges within the Chicago Mercantile Exchange market, as per Cointelegraph.
Several prominent asset managers, including WisdomTree, BlackRock, Invesco, Fidelity, and Grayscale, are vying to launch spot Bitcoin ETFs. Historically, the SEC has rejected such proposals, but now it is pushing its decision-making to early January, aligning with the latest deadlines for most applications.
Approval of these ETFs would bring Bitcoin to major Wall Street exchanges, widening its investor base and benefiting from the backing of globally renowned investment firms. Rejection could lead to appeals from investment managers, further delaying the process.
A spot Bitcoin ETF mirrors the immediate market price of Bitcoin, holding actual BTC, while a futures Bitcoin ETF invests in Bitcoin futures contracts. The SEC greenlit the first futures Bitcoin ETF in 2021.