Bitcoin ETF Watch: SEC Meeting Could Bring Big News on November 2!

Published by

Elena R

October 31, 2023

The United States Securities and Exchange Commission (SEC) is preparing to take another look at Grayscale’s application for a Bitcoin Exchange-Traded Fund (ETF). This update comes following a recent order from the U.S. Court of Appeals, which suggests a potential change in the SEC’s position on cryptocurrency investments.

Trading volumes for Grayscale’s GBTC and ProShares’ BITO have recently surged. Major companies are now entering the competition. The key question remains: Will the SEC approve Grayscale alone, or will all applicants get the green light together?

Details of the Upcoming Meeting

The SEC has organized a private meeting, bringing together top officials, including Commissioners, legal experts, and recording secretaries. The meeting’s agenda covers important topics such as settlement claims, administrative proceedings, litigation resolutions, and matters related to examinations and enforcement proceedings. This demonstrates the SEC’s commitment to thoroughly reviewing Grayscale’s ETF proposal.

However, this development stems from a significant court order in late August, favoring the conversion of the Grayscale Bitcoin Trust (GBTC) into a Bitcoin ETF. The passing of the October 13 deadline has now set a clear timeline for the approval process of what could become the first U.S. Bitcoin ETF.

Also Read: Crypto Investment Inflows Hit 15-Month High on Bitcoin ETF Hopes

Speculation and Talk: What Should We Expect?

Notable attorney Scott Johnsson suggests a potential clue about the SEC approving a Bitcoin ETF on November 2. This speculation arises from the SEC’s lack of opposition to a court judgment favoring the conversion of Grayscale’s Bitcoin Trust (GBTC) into a Bitcoin ETF.

Johnsson places significant emphasis on an upcoming private meeting scheduled for November 2, although the news remains uncertain. This development has the potential to significantly impact the cryptocurrency market.

Mixed Views

Market observers are closely monitoring this situation, with some expecting that the SEC might collectively approve existing ETF applications. Grayscale’s application, supported by a favorable court order, stands out in terms of timing and regulatory disposition. Mike Novogratz, CEO of Galaxy Digital, is optimistic and predicts that the Bitcoin ETF may secure SEC approval this year.

But some, like Dave Nadig, fear that SEC Chair Gary Gensler could unexpectedly reverse his stance, a move described as “Gensler semi-comedic rug-pull.” Bloomberg’s ETF analysts also view such a reversal as “amazingly sadistic.”

Prepare for a roller-coaster ride

Attorney Scott Johnsson acknowledges the looming threat of a sudden change in regulatory direction. As of the current moment, Bitcoin is trading at $34,314. The uncertain regulatory environment continues to be a concern for the cryptocurrency market.

We want to hear from you! What are your predictions for the future of Bitcoin ETFs?

Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.