- SEC Commissioner Hester Pierce said there’s no reason to stand in the way of BlackRock Bitcoin ETF pursuit.
- The statement has reignited hope that approval for the product might be close.
In a recent interview with Bloomberg, SEC Commissioner Hester Peirce, dubbed “Crypto Mom” for her pro-crypto and blockchain sector position, said, “There is no reason for us to stand in the way of a spot Bitcoin ETF,” referring to the SEC.
This statement has sent excitement through the crypto community, as it solidifies the industry’s sentiment toward the potential approval of a Bitcoin (BTC) spot Exchange Traded Fund (ETF) in the United States. Specifically, the announcement has caused a surge in Bitcoin prices, with the market capitalization moving positively in tandem.
Commissioner Peirce’s Stance on Bitcoin ETF
Hester Peirce has been an advocate for greater regulatory clarity in the cryptocurrency space for quite some time. As early as June 2021, she expressed cautious optimism about the approval of a spot Bitcoin ETF in the USA, and now, the signs seem to be aligning in favor of such approval.
According to Peirce, the SEC should not stand in the way of such innovations, especially when market participants are seeking exposure to well-established assets like Bitcoin through regulated channels. She acknowledged that the SEC’s role is to ensure investor protection, but she also emphasized the importance of providing investors with the freedom to make their own investment decisions.
Meanwhile, a resurfaced video from 2019 featuring Gary Gensler, the current Chair of the SEC, has reignited discussions on social media. In the video, Gensler criticized the SEC’s approach to Bitcoin products, particularly ETFs, citing inconsistencies in the regulatory framework.
This has led some in the crypto community to point out the apparent shift in Gensler’s perspective since taking on the role of SEC Chair. The contrast between his past critique and current position has sparked debate about his inconsistency in the community.
Strategic Moves by Industry Giants for BTC ETF
The momentum toward a Bitcoin Spot ETF approval has been strengthened by recent moves from industry giants, including Grayscale and BlackRock. Reports indicate that a meeting took place between Grayscale and the SEC, and the updated filing by Grayscale Bitcoin Trust (GBTC) on November 22, further emphasizes the meticulous preparation and strategic foresight of these financial titans.
Another pivotal aspect of the ongoing discussions revolves around the choice between in-kind and cash redemption models for the proposed ETF. The preference of BlackRock for the in-kind redemption model, involving a 5-step process with ETF shares delivered to a Transfer Agent, is gaining attention for its potential to provide a smoother operational framework for both asset managers and investors. This contrasts with the cash model, which requires moving BTC out of cold storage.
Though the Bitcoin ETF scene is dominated by, BlackRock, Grayscale and VanEck, Franklin Templeton has joined also joined the bangwagon in registering for a spot Bitcoin Exchange-Traded Fund with the US SEC. According to the most recent update, the SEC has formally accepted the filing with decision expected soon.
With $1.5 trillion under management, Franklin Templeton has a significant footprint in the asset management business and might pull sufficient capital into the market if an actual Bitcoin ETF is approved.
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