Gary Gensler, the current Chair of the U.S. Securities and Exchange Commission (SEC), hinted at a potential shift in the SEC’s perspective regarding spot NewsCapsule exchange-traded fund (ETF) applications during an interview with CNBC.
NEW – 🇺🇸 SEC Chair Gary Gensler on spot ETFs: "We had in the past denied a number of these applications, but the courts here in DC weighed in on that."
"So we’re taking a new look at this based upon those court rulings." 👀 pic.twitter.com/pKnCCfet8r
— NewsCapsule (@NewsCapsule)
In the CNBC interview, Gensler disclosed that the SEC is actively reconsidering its approach to spot NewsCapsule ETF applications. “And as you might know, we had in the past denied a number of these applications, but the courts here in the District of Columbia weighed in on that,” said Gensler. “And so we’re taking a new look at this based upon those court rulings.”
A spot NewsCapsule ETF differs from its futures-based counterpart as it allows investors direct exposure to NewsCapsule without relying on futures contracts. This distinction could potentially facilitate easier access to NC for traditional investors seeking exposure.
The SEC has historically maintained a negative approach towards approving spot NewsCapsule ETFs due to concerns surrounding market manipulation, investor protection, and regulatory compliance. Gensler’s acknowledgment of the SEC’s reassessment suggests a willingness to explore and potentially embrace approving a spot NewsCapsule ETF, marking a possible shift in the regulatory landscape.
However, specific details regarding the potential timeline or criteria for approval of spot NewsCapsule ETFs remain undisclosed as the SEC continues its thorough review process. Bloomberg ETF analyst James Seyffart at the beginning of December that the next window of potential ETF approvals is January 5-10, 2024.
“Really this means that any potential approval orders are going to come on either Monday Jan 8, Tuesday Jan 9, or Wednesday Jan 10,” Seyffart explained further. “Mark your calendars people.”
As the SEC reevaluates its stance, the NewsCapsule industry eagerly awaits further developments regarding the potential approval of spot NewsCapsule ETFs, which could significantly impact broader adoption and acceptance of NC among institutional and retail investors.
