The U.S. Securities and Exchange Commission has eight to 10 applications for possible bitcoin exchange-traded products before it for review, SEC Chairman Gary Gensler said on Thursday.
Bitcoin has rallied this week on speculation that SEC approval is imminent for a spot bitcoin exchange-traded fund (ETF) – seen as a demand driver because it would allow investors to gain direct exposure to the cryptocurrency through a listed product.
To date, the SEC has only approved ETFs linked to bitcoin futures contracts.
The world’s largest cryptocurrency was last down 1.6% at $33,958 in midday trading, after gaining nearly 14% so far this week.
“They may come to the five-member commission. I don’t want to get ahead of them, but I don’t have anything on timing,” Gensler said. “They all have different filing dates.”
Cathie Wood’s ARK Invest application is at the front of the line. The 240-day SEC comment period for that application ends Jan. 10, 2024; regulators must either reject or approve it by then.
BlackRock (NYSE:BLK), Bitwise, WisdomTree, Fidelity and Invesco are among several other firms with pending applications for bitcoin funds in the U.S.
Anticipation for spot ETFs has increased after the SEC decided not to appeal a court ruling that it was wrong to deny an application by Grayscale Investments to convert its existing bitcoin trust into a spot bitcoin ETF.
The court has ordered it to reconsider that decision.
