SEC Chair Gary Gensler Hints at Rethinking Approach to Bitcoin ETFs

Regulatory Shift on the Horizon?

The U.S. Securities and Exchange Commission (SEC) may be reconsidering its stance on spot Bitcoin exchange-traded products (ETFs) following a recent court decision involving Grayscale, according to SEC Chair Gary Gensler.

New Look at Bitcoin ETFs

In an interview with CNBC, Gensler revealed that the SEC currently has "between eight and a dozen filings" for spot Bitcoin ETFs in the pipeline. He acknowledged that the agency had previously denied several applications but hinted at a potential shift in approach:

"We had in the past denied a number of these applications," Gensler said. "So we're taking a new look at this based upon those court rulings."

Grayscale's Role

When asked if he was referring to Grayscale, Gensler avoided giving a direct answer, emphasizing that the SEC operates within the boundaries set by Congress and interpreted by the courts.

Grayscale Investments had its ETF offering through its Bitcoin Trust denied by the SEC, but a federal judge overturned the decision in August.

Asset Managers Racing for Approval

BlackRock, Fidelity, Grayscale, Invesco, VanEck, and Valkyrie are among the asset managers vying to launch their spot Bitcoin ETFs. While all applications have been delayed, analysts believe that a batch approval could happen in early January.

SEC Prioritizing Treasury Market

In a separate interview with Bloomberg, Gensler focused on recent changes in the U.S. treasury market as the agency's current priority, sidestepping questions about the number of spot Bitcoin product filings.

Reactions to Gensler's Remarks

U.S. Congressman Bryan Steil criticized Gensler for his lack of transparency, accusing him of pushing crypto offshore through the SEC's regulatory approach. Bloomberg ETF analyst James Seyffart commented that Gensler tends to give vague answers, skillfully hedging his words.