- After the court decision in favor of Grayscale Investments, SEC is facing important deadlines to decide on seven spot Bitcoin exchange-traded fund (ETF) applications.
- Bitwise’s ETF fate will be announced on September 1st, followed by BlackRock, VanEck, Fidelity, Invesco, and Wisdomtree on September 2nd.
- The recent decision of the US Court of Appeals included SEC’s rejection of Grayscale’s application as “arbitrary and capricious,” which is believed to increase the chances of success for future applicants.
SEC is preparing to announce its decisions for 7 spot Bitcoin ETFs; how it will navigate through the decision chaos remains unknown.
SEC to Announce Decision on Spot Bitcoin ETFs
The United States Securities and Exchange Commission (SEC) is facing important deadlines to decide on seven spot Bitcoin exchange-traded fund (ETF) applications after the court decision in favor of Grayscale Investments. Analysts are evaluating various scenarios following SEC’s recent defeat against Grayscale Investments.
SEC is facing important deadlines to decide on seven spot Bitcoin ETF applications. Bitwise’s ETF fate will be announced on September 1st, followed by BlackRock, VanEck, Fidelity, Invesco, and Wisdomtree on September 2nd. Valkyrie’s application decision is expected on September 4th. These deadlines come after SEC’s defeat against Grayscale Investments in the US federal appeals court.
The recent decision of the US Court of Appeals included SEC’s rejection of Grayscale’s application as “arbitrary and capricious,” which is believed to increase the chances of success for future applicants. Bloomberg ETF analyst James Seyffart suggests that this decision could have a positive impact on future ETF applicants in the next wave.
Uncertain Progress: Possible Moves by SEC
SEC now has a 90-day period to decide whether to appeal the recent court decision. Analysts are unsure about the regulator’s future steps. If SEC does not appeal to the court, it will have to specify the execution of the decision, which could involve approving or reevaluating Grayscale’s application.
There are two potential scenarios for SEC: either accepting and allowing Grayscale to convert GBTC to a Bitcoin spot ETF, or canceling the approval of Bitcoin futures ETFs.
While some believe that canceling Bitcoin futures ETFs is unlikely, considering SEC’s openness to Ethereum futures ETFs, the institution will need to manage the complexity of its decisions considering the increasing interest and developments in the cryptocurrency field.
