- SEC announced on Thursday that it will postpone its decisions on seven spot bitcoin ETF proposals while reviewing the latest applications.
- The decision date for Bitwise Bitcoin ETP Trust has also been postponed until October 16. Meanwhile, the initial evaluation date for Global X’s spot Bitcoin ETF will be October 7.
- It is known that delays were largely expected, and some analysts believe that the regulator will wait to make decisions on all proposed funds at the same time.
SEC has postponed the decision for all spot Bitcoin ETFs; This was already expected, but now investors are focusing on other dates. When will the ETFs be evaluated?
SEC Postpones All Spot Bitcoin ETFs
The U.S. Securities and Exchange Commission (SEC) announced on Thursday that it will postpone its decisions on seven spot bitcoin ETF proposals while reviewing the latest applications.
The final decision dates for iShares Bitcoin Trust by BlackRock, Wise Origin Bitcoin Trust by Fidelity, VanEck Bitcoin Trust, WisdomTree Bitcoin Trust, and Invesco Galaxy Bitcoin ETF have been extended until October 17, while the final date for Valkyrie Bitcoin Fund has been postponed to October 19.
The decision date for Bitwise Bitcoin ETP Trust has also been postponed until October 16. Meanwhile, the initial evaluation date for Global X’s spot Bitcoin ETF will be October 7 – ahead of the other applications. WisdomTree stated:
“The Commission has found it appropriate to designate a longer period for considering the proposed rule change and the issues raised therein to allow sufficient time for the Commission to be able to act on the proposed rule change.”
The Commission has not yet approved a spot Bitcoin ETF due to concerns of fraud and manipulation. SEC allowed the first Bitcoin futures ETF to trade in 2021.
Bitcoin, the largest cryptocurrency by market capitalization, experienced further declines with a 5.1% drop to $25,965 within a 24-hour period along with the news.
SEC acknowledged the applications for proposed funds in July. It is known that delays were largely expected, and some analysts believe that the regulator will wait to make decisions on all proposed funds at the same time.
Following a delay proposed by ARK Invest and 21Shares for a similar fund, SEC requested new written comments extending the process for at least one more month.
Grayscale’s Victory
The delays came shortly after the crypto industry celebrated a victory following Grayscale Investments’ ongoing litigation with the SEC over a spot Bitcoin fund. The asset manager is racing to convert its flagship GBTC fund into an ETF, which was initially rejected last year.
It is noted that the decision does not mean the approval of a spot Bitcoin ETF, but it means that the SEC will have to reconsider Grayscale’s ETF proposal. Experts say that the likelihood of spot Bitcoin ETFs avoiding SEC approval will be higher after the meeting.
