The United States Securities and Exchange Commission (SEC) has once again postponed its decision on several applications for spot Bitcoin exchange-traded funds (ETFs). The delay affects prominent applicants, including BlackRock, VanEck, WiseOrigin, Invesco Galaxy, WisdomTree, Bitwise, and Valkyrie Digital Assets.
The SEC’s decision to extend the review period comes in light of a crucial court ruling favoring Grayscale Investments’ bid to convert its Bitcoin Trust into an ETF. This development raised expectations that the agency might finally approve a spot Bitcoin ETF in the United States, a historic first.
The news of this decision has had a significant impact on Bitcoin’s price, with the cryptocurrency experiencing a 4.7% decline in the past 24 hours, bringing it down to $25,980.
The delay raises questions about the SEC’s stance on spot Bitcoin ETFs. It’s worth noting that the regulatory agency has repeatedly cited concerns about fraud and market manipulation in its rejections of these ETF applications since 2013. However, the recent court ruling questioned the consistency of the regulator’s arguments, especially when futures Bitcoin ETFs have been approved since 2021.
The SEC Extends Decision Timeline to October 17
With the extended review period, the SEC has until October 17 to decide whether to approve or reject most of the spot Bitcoin ETF applications. Bitwise’s application has a deadline of October 16, while Valkyrie has until October 19.
As anticipation within the crypto community grows, so do the odds of a regulatory green light. Analysts, including Bloomberg’s James Seyffart, have raised their probability assessment of a spot Bitcoin ETF being approved this year to 75%, largely due to Grayscale’s legal victory.
However, some argue that it would be unfair for the SEC to approve one asset manager’s ETF while others are left waiting. In July, Grayscale emphasized that all spot Bitcoin ETFs should be approved simultaneously, urging the Securities and Exchange Commission to avoid favoritism.
It’s right to say that the SEC’s persistent delays and cautious approach to approving a Bitcoin ETF are hindering investment opportunities in the cryptocurrency industry. Consequently, the U.S. is lagging behind other nations in adopting the potential of cryptocurrencies and blockchain technology. Meanwhile, the final decision, set for October 17, 2023, will carry substantial implications for the future of cryptocurrency investment in the United States.
