SEC Chief Gensler acknowledges consideration of Bitcoin ETF proposals

In an interview with Bloomberg TV on Wednesday, SEC Chairman Gary Gensler acknowledged that the SEC is evaluating multiple exchange product filings related to Bitcoin, the first time since the false spot Bitcoin approval reports shook the market. Previously, the SEC suggested that it would make official statements about its activities. 

Gensler makes calculated Bitcoin 'in a security' statement

Gensler revealed that the Commission is evaluating around eight to ten of ETF filings related to Bitcoin 'to be in a security.' The calculated statement once again specifies that the SEC is clear on the non-security status of Bitcoin. 

Gensler's remarks also reiterate the SEC's cautious approach. "We don't do things against a clock. It's really about the staff work and feeding things up to our five-member commission and we sometimes have discussions and negotiations even and compromises amongst the five of us," he said. 

Gensler's statement also provides a timeline for the approval process, as he said that the SEC has traditionally taken ”between 12 and 24 months between a proposal and adoption.” The SEC chief underlined that sometimes it takes 15 to 19 months, a crucial reminder for those eagerly awaiting the introduction of Bitcoin ETFs.

"These Exchange Traded products need to register with the SEC, and they go through a filing somewhat similar to going public, like an IPO. And so it's really the work of our Division of Corporation Finance that gives feedback, or Division of Trading and Markets of course looks at the filings of the exchanges," Gensler added. 

Gensler didn’t explicitly comment about the likelihood of an approval of the pending Bitcoin ETF applications. "I'm not gonna prejudge the staffs doing work on those multiple filings,” he said.

Grayscale's case could set precedent for other ETF approvals

Friday holds significant importance in the ongoing wait for approval of Bitcoin exchange-traded funds (ETFs), notes a recent report by Bloomberg.

Grayscale Investments LLC's case to convert its Bitcoin trust (GBTC) into an ETF could see a mandate from the DC court by tomorrow. This development follows the SEC's decision not to appeal the previous ruling by its October deadline. 

Bloomberg analysts said that the resolution of Grayscale's legal battle with the SEC could provide insights into the ETF-approval process. Recently, Grayscale pointed out its readiness to launch the ETF while a green light from the SEC is anticipated.