SEC Postpones Ruling on 7 Bitcoin ETF Applications
Mitchell Nixon
The SEC has postponed its determination regarding applications for Bitcoin exchange-traded funds (ETFs) from WisdomTree, Invesco Galaxy, Valkyrie, VanEck, Bitwise Asset Management, Blackrock and Fidelity.
The United States Securities and Exchange Commission (SEC) has rescheduled its verdict on six requests for spot Bitcoin ETFs. As per filings submitted on August 31, the commission has extended the timeframe for reviewing the spot Bitcoin ETF applications submitted by WisdomTree, VanEck, Invesco Galaxy, Bitwise, Blackrock and Valkyrie. This also includes the Wise Origin Bitcoin Trust proposal presented by Fidelity. Upon being published in the Federal Register, the SEC will have an additional 45 days to deliberate on the proposed changes to regulations, allowing the potential listing of these investment instruments. This grants the regulator until October to render a decision, whether it’s for approval, denial, or further postponement.
These postponements have arisen amidst speculation that the SEC could greenlight a spot Bitcoin ETF in the United States for the first time, following a significant court case loss by asset manager Grayscale. An appellate court ruled on August 29 that the SEC must assess Grayscale’s petition to transform its Bitcoin Trust into an ETF. This development has led many experts to believe that the chances of at least one spot crypto ETF getting approval have notably risen.
WisdomTree previously encountered a lack of approval for its Bitcoin ETF proposal in 2021. However, with the entry of BlackRock into the spot Bitcoin ETF competition, WisdomTree refiled its application. In July, after reports suggested that the SEC was more inclined towards accepting ETF applications accompanied by a surveillance-sharing agreement, several firms resubmitted applications and mentioned crypto exchange Coinbase as a partner.
Obviously the most important was Blackrock.
In its submission, BlackRock detailed the significance of the shares in eliminating the “obstacles represented by the complexities and operational burdens involved in a direct investment in Bitcoin” The postponement of the ETF occurred subsequent to a plea from cryptocurrency asset manager Grayscale Investments, who sought to reverse an SEC verdict that initially rejected the inclusion of its over-the-counter Grayscale Bitcoin Trust (GBTC) on August 29.
We did an article on that here.
Numerous individuals within the cryptocurrency community proposed that the endorsement of a spot Bitcoin ETF supported by BlackRock, the largest asset manager globally, would serve as a favourable indication for increased adoption. The extension, affording the SEC an additional 45 days from the date of publication in the Federal Register to either grant approval, reject, or once more postpone the BlackRock application, sets the subsequent deadline for October 17.