Key takeaways:
- Former commission head Jay Clayton expressed his belief that approval would eventually occur after the US SEC delayed decisions.
- The SEC was mandated to examine asset manager Grayscale’s request to transform its Bitcoin Trust (GBTC) into a spot Bitcoin ETF.
Former commission head Jay Clayton expressed his belief that approval would eventually occur after the United States Securities and Exchange Commission (SEC) delayed decisions on a number of exchange-traded funds that invest in spot Bitcoin.
In an interview with CNBC on September 1, Clayton claimed that the backing of spot Bitcoin investment vehicles by big financial institutions marked a change in the way that regular investors may gain exposure to cryptocurrencies.
The SEC extended the review period for applications for spot BTC exchange-traded funds (ETFs) from BlackRock, WisdomTree, VanEck, Invesco Galaxy, Bitwise, Valkyrie, and Fidelity on August 31.
Following the notice’s publication in the Federal Register, the commission will have an additional 45 days to approve, reject, or postpone the ETF applications submitted by these seven large companies once. Clayton stated that he anticipates “progress on this going forward.” Up until March 2024, the SEC may keep delaying the application deadlines. Clayton remarked:
“An approval is inevitable,”
The SEC was mandated to examine asset manager Grayscale’s request to transform its Bitcoin Trust (GBTC) into a spot Bitcoin ETF. Clayton’s position resembled that of US Court of Appeals Circuit Judge Neomi Rao, who issued the ruling along with two other judges. The SEC has already approved BTC futures ETFs, according to Rao, who also claimed that Grayscale’s offering was “materially similar.”
On August 31, just before the US Labour Day vacation weekend, there were many ETF application delays. The next significant spot BTC application due date is October 7, which is also the day the commission is anticipated to disclose information regarding the offering from fund manager Global X.
Earlier this week, Bitwise put in a request to withdraw its exchange-traded fund (ETF) application for its Bitcoin and Ether Market Cap Weight Strategy. Matt Hougan, the chief investment officer at Bitwise, suggested that all ETFs should need SEC approval.
