SEC delays decision on seven spot Bitcoin ETFs, including Blackrock’s
The U.S. Securities and Exchange Commission (SEC) postponed decisions regarding proposed rule changes related to spot Bitcoin ETFs on Aug. 31.
The SEC’s latest notices push back decisions on proposed rule changes from Fidelity (Wise Origin), VanEck, WisdomTree, and Invesco, all of which intend to offer a spot Bitcoin ETF via Cboe BZX Exchange. Other notices delay decisions regarding Valkyrie Investments and BlackRock (iShares) which intend to offer ETFs via Nasdaq. Another delay concerns Bitwise, which intends to offer its ETF via NYSE Arca.
The SEC has postponed most of its decisions until Oct. 17. However, its decision on Valkyrie is postponed to Oct. 19, and its decision on Bitwise is postponed to Oct. 16.
It is unclear whether it is possible for the SEC to delay its decisions again when the next deadlines are reached. However, each of the above companies has had its previous Bitcoin ETF applications rejected by the SEC. If the SEC decides to reject the latest round of ETF proposals in October, the applicants may submit new applications, once again renewing the cycle of approvals, delays, and rejections.
Latest ETFs are promising, but not guaranteed
The latest group of spot Bitcoin ETF applications and proposed rule changes are widely seen as promising. The asset management giant BlackRock was one of the first applicants in this round of proposals. BlackRock’s proposal has two factors in its favor: the company has a high success rate with past ETF proposals, and its proposed Bitcoin spot ETF relies on Coinbase for its surveillance-sharing agreement.
Most other current applications are closely based on BlackRock’s, and as such, some believe that all similar applications will be successful if BlackRock succeeds.
A positive legal outcome for Grayscale, which intends to convert its GBTC fund to an exchange-traded fund, has also contributed to general optimism. However, that victory alone does not allow Grayscale to offer a spot Bitcoin ETF, and Grayscale’s plans differ from those of most other recent spot Bitcoin ETF applicants.
The SEC has not yet approved any spot Bitcoin ETF to date. As such, the SEC will not necessarily approve any proposals at the next deadline, regardless of any optimism.
Note: this piece was updated to include additional delays.
