Key takeaways:
- Six applications for spot Bitcoin exchange-traded funds (ETFs) have been postponed by the SEC of the United States.
- After the SEC lost a significant court lawsuit brought by asset manager Grayscale, there was anticipation that the agency could finally authorize a spot Bitcoin ETF in the United States.
Six applications for spot Bitcoin exchange-traded funds (ETFs) have been postponed by the Securities and Exchange Commission (SEC) of the United States.
The commission has assigned a lengthier timeframe for reviewing spot Bitcoin ETF proposals from WisdomTree, VanEck, Invesco Galaxy, Bitwise, and Valkyrie, as well as the Wise Origin Bitcoin Trust put out by Fidelity, according to SEC filings dated August 31.
After the proposed rule changes are published in the Federal Register, the SEC has 45 days to evaluate them. This gives the regulator until October to accept, reject, or postpone a decision.
After the SEC lost a significant court lawsuit brought by asset manager Grayscale, there was anticipation that the agency could finally authorize a spot Bitcoin ETF in the United States. The chances of at least one spot crypto ETF being approved have dramatically increased, according to many experts, following an appellate court’s decision on August 29 that the SEC would need to review Grayscale’s petition to convert its Bitcoin Trust into an ETF.
The SEC rejected WisdomTree’s request for a Bitcoin ETF after a 2021 filing. However, WisdomTree resubmitted its application once BlackRock entered the spot Bitcoin ETF contest.
Some companies re-filed in July, listing cryptocurrency exchange Coinbase as a partner, in response to concerns that the SEC would be more receptive to considering ETF applications with a surveillance-sharing agreement.
Six companies, including BlackRock, ARK Invest, Valkyrie, Fidelity, VanEck, Bitwise, and Invesco, have applications for cryptocurrency ETFs pending with the SEC.
Given that the SEC’s deadline was September 1, many had anticipated that it would make a decision or postpone permission for Bitwise’s BTC investment vehicle first. Since Labor Day is a national holiday in the United States and falls on September 4, 2023, the commission could want to submit the papers before the weekend.
