SEC pushes back decision on 7 spot Bitcoin ETFs
The U.S. Securities and Exchange Commission (SEC) has delayed its decision on seven Bitcoin exchange-traded fund (ETF) applications, extending the waiting period for another 45 days.
These applications were submitted by BlackRock, WisdomTree, Invesco Galaxy, Wise Origin, VanEck, Bitwise, and Valkyrie Digital Assets. Initially, the SEC was expected to rule on these applications by September 4, but now the decision is expected in mid-October.
This delay is not a surprise to many in the crypto industry, as the SEC has the authority to extend its review period for ETF proposals for up to 240 days, or approximately six months. Previously, the SEC also delayed its deadline for a proposal from Ark Investment Management in August.
As per filings from the securities regulator, it will require until at least October 17 to determine whether to approve or deny the majority of the applications. The SEC has established a new deadline of October 16th for Bitwise’s application, while Valkyrie’s deadline has been set for October 19. Initially, the SEC was expected to make a decision on these applications prior to Saturday, September 2nd.
“The Commission finds it 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 the issues raised therein,” the SEC’s filing reads.
Cathie Wood, CEO of ARK Investment Management, previously suggested that her firm might be first in line to receive approval for a spot Bitcoin ETF. However, she then changed her stance and mentioned that the SEC may approve multiple spot Bitcoin ETFs simultaneously.
The SEC’s decision comes shortly after the District of Columbia Court of Appeals ruled in favor of Grayscale Investments, the manager of the Grayscale Bitcoin Trust (GBTC), the world’s largest Bitcoin fund. The court overturned the SEC’s earlier decision to prevent turning GBTC into a spot Bitcoin ETF, stating that the SEC’s denial was “arbitrary” and “capricious” because it did not clearly explain the distinction between spot Bitcoin ETFs and already-listed futures ETFs.
These delays and regulatory uncertainties continue to be a source of frustration and uncertainty within the cryptocurrency industry, as market participants eagerly await the approval of a Bitcoin ETF in the United States.
