- According to the latest information, the U.S. Securities and Exchange Commission (SEC) has made decisions regarding the spot Bitcoin exchange-traded fund (ETF) applications made by WisdomTree, Valkyrie, and Invesco Galaxy earlier this year.
- Last month, the SEC began reviewing applications from crypto-focused and traditional finance firms such as Wise Origin (Fidelity), BlackRock, Fidelity, and Invesco Galaxy.
- Earlier this week, the D.C. Circuit Court determined that some of the regulator’s arguments for denying Grayscale’s request to convert Grayscale Bitcoin Trust into an ETF appeared “arbitrary and thoughtless.”
SEC responds to applications for highly anticipated spot Bitcoin ETFs; decisions announced for 3 firms applying for spot Bitcoin ETFs!
SEC Announces Critical Spot Bitcoin ETF Decisions
According to the latest information, the U.S. Securities and Exchange Commission (SEC) has postponed the decision-making process on spot Bitcoin exchange-traded fund (ETF) applications made by WisdomTree, Valkyrie, and Invesco Galaxy earlier this year.
Last month, the SEC began reviewing applications from crypto-focused and traditional finance firms such as Wise Origin (Fidelity), BlackRock, Fidelity, and Invesco Galaxy. The applicants hope to launch the first spot Bitcoin ETF, which they argue would allow retail investors to invest more in Bitcoin and protect them from difficulties such as setting up wallets or buying Bitcoin directly.
In today’s decisions, the SEC avoids making a definitive decision; instead, it extends the current comment periods and allows for more public feedback on the applications.
Earlier this week, the D.C. Circuit Court determined that some of the regulator’s arguments for denying Grayscale’s request to convert Grayscale Bitcoin Trust into an ETF appeared “arbitrary and thoughtless.” Grayscale argued that the SEC had no solid basis for rejecting the proposal to convert Grayscale Bitcoin Trust into an ETF.
According to the court, the SEC is acting inconsistently!
Judge Neomi Rao, writing on behalf of the United Court, stated that the denial of the application was inconsistent with the approval of Bitcoin futures ETFs and that it did not explain the “99.9% correlation” between the spot and futures market prices of underlying Bitcoin. The judge stated that Grayscale’s proposed ETF had won the claim that it was “essentially similar” to futures ETFs. The judge said;
“First, the underlying assets – Bitcoin and Bitcoin futures – are closely correlated. Second, the surveillance sharing agreements with CME are the same, and the likelihood of detecting fraud or manipulative transactions in the Bitcoin or Bitcoin futures market should be the same.”
The SEC has used similar arguments to reject Grayscale’s proposal in rejecting other ETF applications. The appellate court has called on the regulator to reconsider the application.
