Bitcoin ETFs Could Be Delayed If Grayscale Sues the SEC

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In recent interviews, Cathie Wood, CEO of Ark Invest, shared her cautiously optimistic perspective on the potential approval of a Bitcoin ETF.

The evolution in the Securities and Exchange Commission’s (SEC) response to Ark Invest’s ETF submissions is keeping the financial community on edge.

In particular, Wood noted a significant change in tone as the SEC posed detailed questions, contrasting with previous denials without substantial interaction.

This shift in the SEC’s approach led Wood to express enthusiasm, interpreting the questions as a sign of a more active and detailed review process.

Although Ark Invest responded to these questions, the lack of additional communication from the SEC after the answers could be seen as a positive indicator, according to Wood.

Despite her optimism, Wood warns of a potential obstacle in the Bitcoin ETF approval process.

Mutiple Bitcoin ETFs Could Be Approved Simultaneously

The SEC is considering the possibility of approving multiple ETFs simultaneously to avoid choosing a “winner.”

This strategy, intended to prevent preferences, introduces considerable complexities, especially concerning Grayscale’s plans to convert its Bitcoin trust into an ETF.

Grayscale’s situation adds another layer of uncertainty to the process. If Grayscale decides to sue the SEC for denying authorization for its conversion, the approval timeline for all Bitcoin ETFs could be delayed.

Wood expresses uncertainty about the feasibility of Grayscale’s conversion and the potential legal challenges it may entail.

Cathie Wood Expects SEC to OK Multiple Bitcoin ETFs

In an additional interview with CNBC Squawk Box, Wood offered her perspective on SEC Chair Gary Gensler’s potential influence on the ETF approval process.

She suggested that Gensler’s political aspirations and focus on the dollar could be significant factors contributing to the delay.

Bloomberg ETF analyst James Seyffart noted that three Bitcoin ETF applications are nearing deadlines, expressing confidence and maintaining a 90% probability of approval by January 2024.

He also highlights that GlobalX updated its ETF filing, leaving only two out of twelve applicants without updates.

The Bitcoin ETF approval process is at a crucial stage, with changes in the SEC’s interaction. The community at large anticipates the imminent approval of these ETFs.

At the time of writing, according to CoinMarketCap data, BTC is trading at $35,931, showing a slight decline after approaching $38,000 a few days ago.

However, we will have to continue waiting to see the outcome and the significant impact expected from the launch of at least one Bitcoin ETF.


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