SEC postpones decision on WisdomTree and One River Bitcoin ETFs

abdelaziz Fathi

The approval of a regulated crypto derivative is still looking far less likely, as the US regulators have once again deferred their decision on whether to approve any of the proposed Bitcoin ETFs.

Per an official document published by the Securities and Exchange Commission (SEC), the new deadlines to review two proposals have been shifted to May and June, as the agency needs more time to review the potential rule change further.

The SEC has extended its review of WisdomTree Bitcoin Trust, and One River Carbon Neutral Bitcoin Trust. The regulatory body said in an extension notice that it would now give an answer on these proposal on May 15 and June 2, respectively, the SEC disclosure indicates.

WisdomTree amended its application back in December after the US Securities and Exchange Commission rejected its proposal for an ETF that would invest directly in bitcoin. As part of the changes, the company said its product would use US Bank as a qualified custodian, hoping such a tweak will win its bitcoin exchange-traded fund application the SEC’s blessing.

In turn, asset management firm One River filed in April to create a bitcoin exchange-traded fund that incorporates the purchase of carbon credits. The digital asset hedge fund, backed by billionaire investor Alan Howard, says its ETF will factor in adjustments to reflect the current spot prices of carbon credits needed to offset the “estimated carbon footprint attributable to each bitcoin.”

A decision was expected no earlier than mid-April, 45 days from the time the applications for the funds were published in the federal register, but the SEC is yet to approve a single BTC exchange-traded fund.

“The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and any comments received,” the SEC wrote in both notices.

There are a number of applications underway to get a bitcoin ETF listed, but so far none have been approved by the SEC. The agency only extended the deliberation window or opened the matter to public comments to avoid reaching any decision on a proposal, meaning today’s delay is no surprise.

Earlier, the regulator also pushed the deadline to make a decision on Kryptoin Bitcoin ETF, Global X Bitcoin Trust, Valkyrie XBTO Bitcoin Futures Fund, and Wisdomtree Bitcoin Trust. Most recently, it denied an application by First Trust Advisors and SkyBridge, citing concerns over “fraudulent and manipulative acts and practices” in markets where bitcoin is traded.

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