According to multiple media reports, the U.S. Securities and Exchange Commission (SEC) is holding talks with Grayscale Investments about the company's plans to launch a spot Bitcoin (BTC) exchange-traded fund (ETF).
News of the meeting between the Wall Street regulator and Grayscale comes as expectations grow that a Bitcoin ETF will be approved by year’s end.
Several other major U.S. investment firms, including BlackRock (BLK) and Fidelity, have also applied to launch Bitcoin ETFs.
News of the talks between the SEC and Grayscale sent the price of Bitcoin up to nearly $37,000 U.S., its highest level of the year.
Approval by the SEC of one or more ETF applications is seen as a milestone for the crypto sector, one that could attract billions of investment dollars.
Grayscale has been in contact with both the SEC's “Division of Trading and Markets” and the “Division of Corporation Finance” after winning a court battle against the regulator this past summer.
Both SEC divisions would play a role in approving the firm's ETF application.
Grayscale already runs the existing Grayscale Bitcoin Trust (GBTC) but is trying to convert that trust into an ETF that would hold crypto assets.
The SEC initially rejected Grayscale’s Bitcoin ETF application, leading to a legal battle that Grayscale ultimately won.
The court decision in favour of Grayscale was finalized in October of this year, putting the application back in front of the SEC.
The price of Bitcoin has been marching higher in recent weeks on expectations that approval of an ETF is imminent.
Year-to-date, Bitcoin’s price is now up 122%.
