- SEC’s Hester Peirce questions the delay in approving a Bitcoin ETF.
- Following a court loss to Grayscale, the SEC remains silent on its ETF stance.
- Industry players sense a “change in behavior” from the SEC post its court setback.
As the Bitcoin ETF debate heats up, Hester Peirce, an ardent crypto supporter within the SEC, voices her bafflement over the agency’s hesitations, casting a spotlight on a long-standing industry grievance.
Hester Peirce’s Candid Revelation
One of the few pro-crypto figures at the Securities and Exchange Commission (SEC), Hester Peirce, shared her insights on the awaited Bitcoin ETF approval in the US. Expressing her long-standing support for such a financial product, Peirce admitted on CNBC’s Squawk Box that the reasons for the delay have always “mystified” her. Particularly highlighting the SEC’s legal tussle with Grayscale, she emphasized its significance in the broader ETF conversation.
Grayscale’s Legal Standoff with SEC
Grayscale, the entity behind the world’s largest Bitcoin fund, challenged the SEC in court last year for its seeming bias. The firm’s grievance stemmed from the SEC’s rejection of its proposal to convert the Grayscale Bitcoin Trust (GBTC) into a spot ETF. This move was seen as contradictory, especially as the regulator had given a nod to similar futures Bitcoin ETFs. In a unanimous decision, the court sided with Grayscale in August, criticizing the SEC’s “arbitrary and capricious” treatment. The SEC’s subsequent silence, paired with its decision to drop a lawsuit against Ripple, further amplified industry sentiments about its inconsistent crypto stance.
Changing Winds at the SEC?
Despite the ongoing dilemmas, there’s a sense of optimism among fund managers. Figures like Mike Novogratz and Cathie Wood have hinted at a perceptible “change in behavior” from the SEC, noting more productive private dialogues. Major ETF contenders, Fidelity and BlackRock, in an apparent nod to this shift, updated their applications recently, including detailed risk disclosures. BlackRock’s CEO, Larry Fink, once a Bitcoin skeptic, now acknowledges the burgeoning investor appetite for Bitcoin-based products. Echoing these sentiments, Peirce noted the palpable interest in such offerings from the investor community.
Conclusion
The long-standing debate around Bitcoin ETFs in the US has seen its share of ups and downs. With voices from within the SEC, like Hester Peirce, advocating for approval, the industry remains hopeful. The regulator’s recent actions, especially post its legal setbacks, might just be indicating a more receptive future stance on cryptocurrency-related products. Only time will reveal the trajectory of this much-anticipated financial product in the US market.
