Grayscale and ‘DC Circuit-ex-machina’ were key to BTC ETF approval — Crypto Mom
Spot Bitcoin (BTC) exchange-traded funds (ETF) could have faced an unfavorable outcome today if it weren’t for the Grayscale appeal last year, according to United States Securities and Exchange (SEC) Commissioner Hester “Crypto Mom” Peirce.
In a statement on Jan.10, Peirce outlined that issuers have attempted to get a spot Bitcoin ETF across the line for more than a decade, and it could very well have extended well beyond if not for “the DC Circuit-ex-machina.”
Peirce referred to the U.S. District Court of Appeals’ decision to overrule the SEC’s denial of Grayscale Investment’s spot Bitcoin ETF application in October 2023.
The court mandated that the SEC take a second review of Grayscale’s application to convert its Grayscale Bitcoin trust into a spot Bitcoin ETF.
It's out: https://t.co/tgI9yE4i83
— Hester Peirce (@HesterPeirce) January 10, 2024
Peirce was reportedly among the three Commissioners who voted to approve the spot Bitcoin ETFs. Gary Gensler and Mark Uyeda reportedly approved the products, while Caroline Crenshaw and Jaime Lizarraga did not.
Peirce said the SEC’s decision today to approve 11 spot Bitcoin ETF applications does not compensate for “the disparate treatment of spot bitcoin products.”
She suggested that the regulator should have acknowledged its error in delaying the approval of spot Bitcoin ETFs.
“The Commission, rather than admitting error, offers a weak explanation for its change of heart,” she further stated.
Related: BlackRock to slash 3% of workforce ahead of Bitcoin ETF deadline: Report
She also noted that the regulator was caught off guard by the Grayscale ruling in 202.
“We squandered a decade of opportunities to do our job. If we had applied the standard we use for other commodity-based ETPs [exchange-traded products], we could have approved these products years ago, but we refused to do so until a court called our bluff.”
On Jan 10, the securities regulator approved the 19b-4 applications from ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock, Grayscale, Bitwise, Hashdex and Franklin Templeton, giving the nod to rule changes that allow a spot Bitcoin ETF to be listed and traded on the respective exchanges.
Following the approval, Bloomberg ETF analyst James Seyffart stated that it is likely the ETFs will be ready to trade on Jan. 11, given that the S-1 applications are “being checked off.”
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