Exploring SEC’s Take on Bitcoin ETFs with Cathie Wood

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• Cathie Wood praised the efforts made by the Securities and Exchange Commission (SEC) in response to a series of spot Bitcoin ETF applications during a program she participated in.
• The SEC has consistently cited concerns about market manipulation, fraud, and investor exposure as reasons for rejecting previous applications.
• Bloomberg ETF analysts Eric Balchunas and James Seyffart believe there is a 90% probability that the regulator will approve the twelve applications on its desk.

According to ARK Invest CEO Cathie Wood, the SEC is now looking at spot Bitcoin ETFs in a different light; is the SEC ready to approve the applications?

SEC Taking a Different Approach to Spot Bitcoin ETFs

During a program she participated in, ARK Invest CEO Cathie Wood praised the efforts made by the Securities and Exchange Commission (SEC) in response to a series of spot Bitcoin ETF applications. It is a well-known fact that the U.S. regulator has never approved any spot Bitcoin ETF applications. Grayscale, once the victim of the SEC’s rejection of its application to convert the Grayscale Bitcoin Trust (GBTC) ETF into a physically backed product, faced this situation.

This situation remained unchanged until a federal judge recently instructed the regulator to reconsider Grayscale’s application. The judge pointed out that the SEC had failed to recognize the clear financial and mathematical relationship between spot and futures markets.

The SEC has consistently cited concerns about market manipulation, fraud, and investor exposure as reasons for rejecting previous applications. Surprisingly, Wood stated that this time the SEC is more receptive to applications and that she is not concerned about it.

Rather than outright rejecting spot BTC ETF applications from companies like BlackRock, Fidelity, WisdomTree, Invesco, and Valkyrie, the regulator confirmed that it is taking time to ask applicants investor protection-focused questions. The SEC encouraged potential spot Bitcoin ETF candidates to make critical changes in their applications, such as sharing surveillance-sharing agreements.

SEC Now More Open-Minded

Cathie Wood mentioned that many of the questions asked were highly technical and that she was quite impressed by the impact of this situation. In her view, the ‘open-mindedness’ displayed by the SEC reflects a positive signal that the time for approval of this spot Bitcoin ETF has come.

Her stance further emphasizes many predictions and optimistic statements circulating within the overall crypto ecosystem. Bloomberg ETF analysts Eric Balchunas and James Seyffart believe there is a 90% probability that the regulator will approve the twelve applications on its desk. Galaxy Digital CEO Mike Novogratz is quite confident that spot BTC ETF applications will receive the much-anticipated approvals this year.