The U.S. Securities and Exchange Commission (SEC) has delayed its decisions on seven applications for Bitcoin exchange-traded funds (ETFs), including one from BlackRock, the world’s largest asset manager. The SEC was expected to rule on the proposals by September 4, but it has pushed back the deadline by 45 days, citing the need for more time to consider the public comments.
The seven firms that submitted the applications are BlackRock, WisdomTree, Invesco Galaxy, Wise Origin, VanEck, Bitwise, and Valkyrie Digital Assets. They all proposed to launch spot Bitcoin ETFs, which would track the price of Bitcoin directly rather than through futures contracts or other derivatives.
SEC Continues to Delay ETF Approvals
The SEC has been reluctant to approve spot Bitcoin ETFs, citing concerns over market manipulation, fraud, and investor protection. The regulator has rejected or postponed every spot Bitcoin ETF proposal since 2013.
However, it has approved several Bitcoin futures ETFs, which are based on contracts traded on regulated exchanges such as the Chicago Mercantile Exchange (CME).
The SEC’s latest move comes after a recent court ruling that favored Grayscale Investments, the manager of the Grayscale Bitcoin Trust (GBTC), the largest Bitcoin fund in the world. The District of Columbia Court of Appeals overturned an earlier SEC decision that prevented GBTC from converting into a spot Bitcoin ETF.
The court said that the SEC failed to provide a clear explanation for its rejection and that it was inconsistent with its approvals of Bitcoin futures ETFs.
The court ruling has raised hopes that the SEC may soon approve spot Bitcoin ETFs, which are seen as a way to attract more institutional and retail investors to the crypto market. Some experts believe that spot Bitcoin ETFs are inevitable and that they could boost the price and adoption of Bitcoin.
Others are more skeptical and say that the SEC may still have reservations about the crypto industry and its regulation. The SEC has until mid-October to make its decisions on the seven applications. If it approves any of them, it would mark a historic milestone for the crypto space and pave the way for more innovation and growth.
