Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), revealed in an interview with Bloomberg that they are currently reviewing around 8 to 10 proposals for the creation of the sought-after Bitcoin ETF.
Gensler heads the agency that has the authority to approve or reject the ETF applications. For several days now, the potential approval of the exchange-traded fund has been in the headlines.
On October 18, Gensler was interviewed by Bloomberg Television and provided some information about the current status of the applications.
“What we have in front of us, just for the public to understand, is not one but multiple — I believe it’s 8 or 10 — submissions that the Securities and Exchange Commission is considering.”
The chairman is well aware that the debate is on the lips of all investors and crypto enthusiasts around the world, and he stated that “the same steps are being followed as when someone requests to launch any new financial product.”
Current Scenario and Possible Outcome
According to the official, “it’s a time-tested process going back decades.” He asserts that it’s not just an internal matter within the SEC; they regularly engage with ETF applicants, listening to their proposals and arguments while providing the necessary feedback.
Behind these applications are companies, investment funds, and some of the world’s largest financial institutions, such as BlackRock, Ark Invest, Invesco, 21Shares, WisdomTree, Fidelity, Valkyrie, Grayscale, among others.
With the latter, the SEC faced a legal setback in August of this year when a court ruled that the SEC’s order denying Grayscale’s request was null and void. It will need to be reviewed again, and if rejected, it must come with consistent explanations for the decision.
If the SEC intends to continue restricting people’s financial freedom, whether they are small savers or large investors, they will need to explain the relevant reasons or, in any case, appear before the court once again.
Beyond acknowledging discussions with the companies, Gensler refrained from providing any further comments or information. Regardless of the situation, his testimony implies that the SEC can no longer postpone the debate and is compelled to make decisions under the scrutiny of a community that is highly expectant of the outcome.
The community has various expectations. Some, like Michael Novogratz, CEO of Galaxy Digital Holdings, take it for granted that Bitcoin ETFs will become an effective reality by the end of this year. Others postpone this outcome until next January.
