Evaluation of Bitcoin ETF Proposals Continues
The U.S. Securities and Exchange Commission (SEC) is currently in the Evaluation of Bitcoin ETF Proposals, as confirmed by SEC Chairman Gary Gensler. Discussions with companies seeking approval for spot Bitcoin ETFs are ongoing. During an interview with Bloomberg reporter Kailey Leinz, Gensler acknowledged concerns related to the Grayscale lawsuit but refrained from providing specific details.
“We have received 8-10 submissions from issuers, and there is a structured evaluation process in place. I eagerly await the recommendations from the SEC staff,” he remarked.
Amid Developments in the Grayscale Lawsuit, Positive Sentiment Prevails in the Crypto Market
This development follows the SEC’s decision not to contest its August court defeat regarding Grayscale’s attempt to convert its Bitcoin Trust (GBTC) into an ETF. Grayscale initially filed for this conversion in October 2021, and GBTC is currently the world’s largest cryptocurrency fund, managing $16.7 billion in assets. In response to the SEC’s decision not to appeal, investors reduced GBTC’s discount to net asset value to around 14%, as reported by Bloomberg. This represents the smallest discount margin since November 2021, in contrast to the record 48.9% discount observed in December 2022.
Furthermore, a recent report from CryptoQuant, a blockchain data provider, suggests that if spot Bitcoin ETF proposals receive approval next year, Bitcoin’s market capitalization could experience significant growth. The report anticipates a surge in institutional investment that could potentially raise Bitcoin’s market capitalization to $900 billion. Additionally, the influx of funds into the digital asset space has the potential to increase the overall cryptocurrency market capitalization by $1 trillion.
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