The United States Securities and Exchange Commission (SEC) has decided to delay its judgments on a collection of seven spot Bitcoin Exchange-Traded Fund (ETF) submissions. The applicants in question include Invesco Galaxy, Wisdomtree, Bitwise, Vaneck, Fidelity’s Wise Origin, Blackrock, and Valkyrie. The SEC announced on Thursday that a more comprehensive evaluation period is required to adequately scrutinize the proposals submitted by these entities.
Extended Review Period for Seven Key Spot Bitcoin ETF Proposals
On the final day of August, the SEC opted to extend its decision-making timeline, providing additional time to rigorously assess the recommended regulatory modifications related to seven individual spot Bitcoin ETFs. The regulator further clarified that this extended period is essential to thoroughly inspect the intricacies of each submission and address any potential concerns that have arisen.
Decisions on the batch of applications, which originate from Wisdomtree, Valkyrie, Bitwise, Fidelity’s Wise Origin, Vaneck, Blackrock, and Invesco Galaxy, have been postponed until the middle or latter part of October. Notably, an attempt to access the Bitwise submission on the SEC’s official website resulted in a 404 error.
In a notification pertaining to the delay, Wisdomtree explained, “The [SEC] considers it appropriate to allot a prolonged period for action on the proposed regulatory change so as to have sufficient time to evaluate the proposed amendment and any related concerns.”
This delay in decision-making follows closely behind Grayscale’s recent legal victory, as well as estimates from Bloomberg ETF analysts Eric Balchunas and James Seyffart who project a 75% likelihood of spot Bitcoin ETF approval in the calendar year 2023. The SEC commenced the review of these applications in the preceding month.
Blackrock initiated the first application of 2023, aiming to secure regulatory approval for a spot Bitcoin ETF, following a series of earlier denials by the SEC over the course of previous years. Inspired by Blackrock’s move, several other financial firms subsequently launched their own applications, aspiring for similar regulatory endorsements.
Although the SEC has granted approval to Bitcoin-based futures ETFs, it has not yet issued approvals for any spot Bitcoin funds operating within the United States. Despite these setbacks, Balchunas reiterated on Thursday that the odds for authorization remain at approximately 75%.
We invite you to express your perspectives and insights regarding the SEC’s recent deferral of decisions on seven spot Bitcoin ETFs. Kindly share your viewpoints on this matter in the comment section below.
Frequently Asked Questions (FAQs) about Bitcoin ETF applications
What is the reason behind the postponement of decisions on Bitcoin ETF applications?
The United States Securities and Exchange Commission (SEC) has deferred its decisions on seven spot Bitcoin Exchange-Traded Fund (ETF) applications to allow for a more extensive review. The SEC is aiming to thoroughly analyze the proposed rule amendments and address any concerns that have been raised.
Which companies have submitted these Bitcoin ETF applications?
The companies that have submitted spot Bitcoin ETF applications include Invesco Galaxy, Wisdomtree, Bitwise, Vaneck, Fidelity’s Wise Origin, Blackrock, and Valkyrie. These major firms are seeking regulatory approval for their proposed ETFs.
When are the decisions expected to be made?
The decisions for the submitted spot Bitcoin ETF applications are now expected to be made in the mid to late October timeframe. The extension in the review period aims to ensure a comprehensive evaluation of each proposal.
How do these delays relate to the broader Bitcoin ETF landscape?
The delay in decisions follows a recent legal victory for Grayscale and estimates from Bloomberg analysts suggesting a 75% chance of spot Bitcoin ETF approval in 2023. While the SEC has previously approved Bitcoin-based futures ETFs, approvals for spot Bitcoin funds within the United States are pending.
What is the significance of Blackrock’s involvement in these applications?
Blackrock, a prominent financial firm, was the first to initiate a spot Bitcoin ETF application in 2023. This move comes after several prior rejections by the SEC in past years. Other financial companies followed suit, hoping to secure regulatory endorsements for their own ETF proposals.
What are the implications of the extended review period?
The extended review period allows the SEC to carefully evaluate each proposal and address any concerns that may have arisen. This approach aims to ensure a comprehensive analysis and a well-informed decision regarding the regulatory approval of these spot Bitcoin ETFs.
More about Bitcoin ETF applications
- U.S. Securities and Exchange Commission (SEC)
- Grayscale’s recent legal triumph
- Bloomberg ETF analysts Eric Balchunas and James Seyffart
- Bitcoin-based futures ETFs