Cathie Wooden, the CEO of Ark Make investments, in an interview with Yahoo Finance, supplied a deep dive into the standing and future prospects of a spot Bitcoin ETF. Her detailed insights provide a uncommon glimpse into the interactions with the Securities and Alternate Fee (SEC).
Ark Make investments’s SEC Engagement
Wooden described a big shift within the SEC’s response to Ark Make investments’s ETF filings, contrasting their present engagement with earlier experiences. “We had put in quite a few occasions a submitting and we had been simply denied. By no means bought any questions, actually by no means bought any response. This time, this summer time, we bought questions again from the SEC,” she famous. This variation, in line with Wooden, signifies a extra energetic and detailed evaluation course of by the SEC.
She expressed pleasure concerning the SEC’s questions, seeing them as an indication of real engagement. Wooden additionally lauded the SEC’s analysis crew for his or her sophistication and depth of understanding. “They’re terribly refined. They know what they’re speaking about,” she stated, including that the extent and nature of the questions urged that the SEC was delving deeply into the matter.
Wooden additionally talked about that Ark Make investments had answered the SEC’s questions and had not acquired additional communication, which she interprets as a doubtlessly constructive indicator. “They by no means let you know that you just’ve happy them however in case you don’t hear from them, that normally means that you’ve happy the solutions to the requests,” Wooden defined.
Spot Bitcoin ETF Odds Are Up, However …
Wooden cautiously optimistic acknowledged that the percentages of approval have elevated. Nevertheless, she highlighted a brand new wrinkle within the course of: the SEC’s doubtless method to approve a number of ETFs without delay to keep away from deciding on a “winner.” This collective approval course of introduces complexity, significantly with Grayscale’s intent to transform its Bitcoin belief into an ETF.
Wooden expressed uncertainty concerning the feasibility of this conversion and the potential authorized challenges it would pose. “Grayscale has stated it is going to sue the SEC once more if it denies the conversion. In the event that they had been to try this earlier than January tenth, I don’t know if that will throw every part up within the air once more. For the others as nicely. For everybody,” she stated.
Nate Geraci, whereas commenting on Wooden’s observations, expressed astonishment about how the Grayscale scenario may impression the timeline for different ETF approvals. “Attention-grabbing feedback from ARK’s Cathie Wooden… Says rumblings that SEC might not enable Grayscale to transform GBTC into ETF. May maintain up timeline for launch if SEC desires to batch approve everybody. Undecided what to make of this,” Geraci remarked.
In one other interview with CNBC Squawk Field, Wooden mentioned SEC Chair Gary Gensler’s potential affect on the ETF approval course of. She speculated that Gensler’s aspirations for the next place within the Treasury and the give attention to the greenback may very well be contributing to the delay in approving a spot ETF.
“I don’t know what it’s however there’s hypothesis that he’s within the Treasury Secretary place at one level… They’re very centered on the greenback. I don’t perceive it myself as a result of he positively understands Bitcoin,” Wooden acknowledged.
Solely 2 Of 12 With out An Up to date Submitting
On one other be aware, James Seyffart, a Bloomberg ETF analyst, highlighted the nearing deadlines for 3 spot Bitcoin ETF functions and expressed confidence in a 90% likelihood for approval. “Okay, we’re nearing in on deadline dates for 3 spot Bitcoin ETF functions. I wish to get forward of it as a result of there’s a reasonably good likelihood we’ll see delay orders from the SEC. Delays WOULD NOT change something about our views & 90% odds for 19b-4 approval by Jan 10, 2024.”
He additionally reported an replace from GlobalX, which filed their amended Bitcoin ETF prospectus, leaving Knowledge Tree and Franklin as the one two of twelve candidates to replace their filings.
At press time, BTC traded at $35,641.
Featured picture from YouTube @Yahoo Finance, chart from TradingView.com