SEC Commissioner Says Delay in Bitcoin ETF Approval Mystifies Her but Remains Uncertain About Approval

Hester Peirce, a pro-crypto SEC commissioner (a.k.a Crypto Mom), has once again voiced her support for the agency to approve a spot Bitcoin (BTC) exchange-traded fund (ETF).

In an interview today, CNBC’s Andrew Ross asked Peirce whether the SEC will approve the multiple applications to launch a spot Bitcoin ETF in the US, given the agency’s losses against crypto-related companies, including Grayscale Investments and Ripple Labs.

“Will the SEC approve a #Bitcoin ETF?” @andrewrsorkin asks @SECGov Commissioner @HesterPeirce: pic.twitter.com/ps11zgoeLk

— Squawk Box (@SquawkCNBC) October 23, 2023

Peirce Wants SEC to Approve Spot Bitcoin ETF

Responding, Peirce said she cannot guarantee that the SEC will approve a spot BTC fund anytime soon. The SEC commissioner noted that she has always thrown her weight behind the approval of a spot Bitcoin ETF. However, she said the continuous denial of a spot-traded Bitcoin ETF application has left her mystified.

“The logic for why we haven’t [approved a Bitcoin ETF] has always mystified me. The court case obviously is an important factor in the landscape, but I can’t guess my colleague’s approach to this topic,” said Peirce.

SEC Remains Hostile Towards Crypto

While Peirce refused to speculate on the SEC’s upcoming decision on the multiple spot Bitcoin applications, she mentioned that the commission has been hostile towards crypto.

“Every day, I hope that they will wake up and they will think, ‘We need to take a more productive approach.’ That hasn’t happened yet, but I’m still hoping that it will,” she added.

Peirce has always supported the SEC’s approval of a spot Bitcoin ETF. However, her opinion has not convinced other SEC commissioners, who have consistently kicked against such approval.

Crypto Stakeholders Optimistic

Meanwhile, given recent developments, several crypto stakeholders, including Galaxy Digital CEO Mark Cuban, are optimistic that the regulator will approve a spot BTC fund soon.

Recall that Grayscale won the SEC in a legal battle over a spot Bitcoin fund approval. Consequently, the court ordered the SEC to review its decision, leading to the denial of Grayscale’s request to convert its Bitcoin Trust (GBTC) into a spot Bitcoin ETF.

Since the SEC did not appeal the decision, Grayscale filed a new application for the conversion of its Bitcoin Trust.

In addition, top financial institutions, including BlackRock and Fidelity Investments, have also joined the race to launch a spot-traded BTC product.

Commenting on BlackRock’s involvement in the quest to launch a spot Bitcoin fund, Peirce said the move shows a growing interest in the spot-traded Bitcoin product.

Notably, the crypto industry is eagerly anticipating the launch of a spot-traded Bitcoin ETF in the US. This is reflected in the massive spike in BTC prices following rumors that the SEC had approved BlackRock’s application.

It can be recalled that the price of BTC spiked over 10% in less than an hour. However, the rally was short-lived after BlackRock refuted the report.

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