The U.S. Securities and Exchange Commission (SEC) is creating significant excitement in the market as the likelihood of approving spot Bitcoin ETFs approaches January 10, 2024. Sam Enzer, a partner at the law firm Cahill Gordon & Reinel, made a notable statement suggesting that the SEC could take steps to approve spot Bitcoin ETFs before the mentioned date.
Spot Bitcoin ETF Finally on the Horizon
Enzer pointed out that the loss of Grayscale’s lawsuit to convert the Grayscale Bitcoin Trust (GBTC) into a spot ETF actually implies an indirect approval of spot Bitcoin ETFs by the SEC. As is known, on August 29, 2023, the U.S. Court of Appeals for the District of Columbia Circuit ruled that the SEC must reconsider its decision to convert GBTC into a spot ETF, exposing the agency’s decision as arbitrary.
Enzer emphasized that the SEC’s insistence on an in-kind redemption model for ETFs and factors such as not arranging meetings with ETF applicants during the holiday season reflect that the approval process for spot Bitcoin ETFs is now almost certain. The lawyer highlighted that companies applying for a spot ETF, such as BlackRock, Fidelity, Galaxy Digital, VanEck, and Skybridge, are reliable and competent, regularly meeting with the SEC.
Indeed, recent meetings have indicated that the SEC is focusing on the redemption model for ETFs and that companies are in the process of signing agreements with authorized participants.
SEC Meetings Held During Christmas Holiday Week
Enzer stated that the SEC staff would not hold meetings about ETF models during a Christmas holiday week unless they were serious about approving spot Bitcoin ETFs. According to the lawyer, this suggests that approval for spot Bitcoin ETFs could come before January 10, 2024.
To date, Blackrock, Fidelity, Franklin Templeton, and Grayscale have met with SEC officials several times. Bloomberg ETF analyst Eric Balchunas reported that companies applying for an ETF are in the final step of approval, which is signing agreements with authorized participants. Balchunas added that if the SEC has clear communication around the cash creation model and signed agreements, it is likely to approve the applications.
