The SEC is in discussions with Grayscale Investments regarding their application to convert their trust product GBTC into a spot bitcoin ETF. This decision could have significant implications for the crypto industry, as the approval of one or more ETF applications is eagerly anticipated by the sector. Grayscale has been in contact with both the SEC's Division of Trading and Markets and the Division of Corporation Finance since winning its court fight. The court decision was finalized last month, putting the application back in front of the regulator.

Former CEO of BitMEX, Arthur Hayes, stated that the approval of a Bitcoin ETF for spot trading could make Bitcoin a financial asset rather than a circulating currency. This is because institutional custody of Bitcoin could transform it from a financial tool of freedom to an institutionalized asset, deviating from its original promise. Hayes stated that if large institutions (such as BlackRock) hoard Bitcoin in ETF tools, the essence of Bitcoin - as a decentralized, usable currency - will be lost. He explained, "You can't actually use Bitcoin. It's a financial asset. It's not really Bitcoin itself."

The potential approval of a physical Bitcoin ETF is causing a stir in the cryptocurrency ecosystem, but Maelstrom Fund founder Arthur Hayes does not believe that such an event is beneficial for Bitcoin or its users. Arthur Hayes believes that asset management companies like BlackRock are actually "agents of the state", and Bitcoin is the opposite of nationalist currency. Assuming that BlackRock and other traditional financial institutions come in and hoard a large portion of freely traded Bitcoin in circulation. In the asset management company's system, users buy derivatives, and the asset management company buys some Bitcoin and puts it with the custodian. Users cannot actually use these Bitcoin, they are buying financial assets rather than Bitcoin itself. If the BlackRock ETF is too large, it will actually strangle Bitcoin because it is just a pile of stagnant Bitcoin, just sitting there.

Bloomberg analyst James Seyffart stated on X platform that Hashdex has updated its Bitcoin futures ETF (DEFI) filing with the SEC.

Analysts believe that the probability of Hashdex's spot-bitcoin exchange traded fund (ETF) application being approved by the Securities and Exchange Commission (SEC) is higher than that of the other 11 applicants due to its unique approach. The firm's application is building upon the SEC's guidance and will rely entirely on CME pricing. Hashdex aims to shift the investment strategy of its already trading Hashdex Bitcoin Futures ETF (DEFI) into one that can hold spot-bitcoin ETF. The firm's decision to use CME over Coinbase for the SEC's requirement of a surveillance-sharing agreement (SSA) could give it an edge over other applicants.

TD Cowen analyst Lance Vitanza estimates that MicroStrategy's stock price is about 30% higher than its enterprise value due to its holding of 158,245 bitcoins as of September. He said that if the SEC approves a bitcoin ETF in the coming months, the premium may decrease by 15% to 25%. Vitanza gave MicroStrategy a "outperform" rating and said that the premium would decrease but not to zero.

Bitwise asset management company analyst Ryan Rasmussen stated in an interview that a spot Bitcoin ETF could bring in as much as $50 billion to $100 billion in fund inflows over the next five years, and "could have a huge impact on the price of Bitcoin." He also stated that the SEC is expected to approve ETF applications as early as the December holiday season, and Bitwise is one of many applicants.

Bloomberg analyst James Seyffart stated on X platform that Valkyrie updated its filing for a spot Bitcoin ETF with the SEC.

American financial lawyer Scott Johnsson commented on the updated spot Bitcoin ETF file by Vaneck on the X platform. He stated that Vaneck's amendment language regarding the seed period is similar to BlackRock's. Given that both issuers are represented by the same lawyer from the law firm of High Wei Shen, this may not be surprising. The only difference is that Vaneck did not use cash as the seed fund like iShares did, but instead suggested using Bitcoin as the seed fund.

Cantor research analysts Josh Siegler and Will Carlson stated that SEC officials are more likely to approve the newly submitted proposal, unlike the previous rejected applications. They cited the application of heavyweight Wall Street company BlackRock and the success of Grayscale Investment LLC in overcoming the opposition of the US Securities and Exchange Commission in converting trusts in court. Josh Siegler and Will Carlson stated in a report on Friday that the approval of a Bitcoin spot ETF is the most important short-term catalyst for the Bitcoin price. The approval of a spot Bitcoin ETF in the US will be a "moment of the cornerstone of Bitcoin's long-term adoption and legalization." They added that the investment tool will simplify the process of finding Bitcoin custodians, self-storage, or investing in futures products.