The SEC Delays BlackRock, Fidelity, WisdomTree, Invesco & Galaxy, VanEck, Bitwise, and Valkyrie’s Bitcoin ETF Applications
Brief breakdown:
- The SEC has delayed the spot Bitcoin ETF applications of BlackRock, Fidelity, WisdomTree, Invesco & Galaxy, VanEck, Bitwise, and Valkyrie.
- The new deadline for these applications is now set for the middle of October.
- Grayscale recently won its lawsuit with the SEC, which could pave the way for the approval of a spot Bitcoin ETF.
- Bloomberg analysts predict a 75% chance of SEC approval for a spot Bitcoin ETF by the end of this year.
The Securities and Exchange Commission (SEC) has once again delayed the spot Bitcoin ETF applications of several major players in the crypto industry. BlackRock, Fidelity, WisdomTree, Invesco & Galaxy, VanEck, Bitwise, and Valkyrie have all been affected by this decision. According to Bloomberg ETF analysts James Seyffart and Eric Balchunas, the new deadline for these applications has been pushed back to the middle of October.
This delay comes as a blow to those hoping for a speedy approval of a spot Bitcoin ETF. It is worth noting that this was the first decision deadline in the listing process for these applicants since filing. The subsequent round of deadlines is expected to take place in mid-October.
In a separate development, Grayscale recently emerged victorious in its legal battle with the SEC. The DC Circuit court of appeals ruled in favor of Grayscale, vacating the SEC’s denial of its GBTC conversion into a spot Bitcoin ETF. This means that the matter will be sent back to the SEC, giving the commission 45 days to appeal and file for an en banc hearing if desired.
While this legal victory does not automatically convert GBTC into a spot Bitcoin ETF, it does bring the industry one step closer to achieving this milestone. The U.S. court of appeals dismissed the SEC’s reasoning for denying Grayscale’s application, criticizing the commission for discounting the clear correlation between the spot and futures markets for Bitcoin. The court emphasized that the SEC’s decision-making process fell short of the standard for reasoned judgment.
In light of these recent developments, Bloomberg analysts Seyffart and Balchunas have revised their predictions regarding the approval odds of a spot Bitcoin ETF by the SEC. They now believe that there is a 75% chance of approval by the end of this year and a 95% chance by the end of 2024.
The race for a spot Bitcoin ETF in the United States remains highly competitive, with various companies vying for approval from the SEC. This latest delay highlights the regulatory challenges and uncertainties surrounding the cryptocurrency market. However, the Grayscale lawsuit victory brings renewed hope and anticipation for the future of a spot Bitcoin ETF. As the industry continues to evolve, it is crucial for investors and enthusiasts to stay informed about these developments and their potential impact on the market.
Hot take: While the SEC’s decision to delay the spot Bitcoin ETF applications may disappoint some, the recent legal victory of Grayscale against the commission is a significant step forward. The court’s criticism of the SEC’s reasoning has shed light on the need for a more thoughtful and well-supported judgment. With analysts predicting high approval odds for a spot Bitcoin ETF, it is only a matter of time before the regulatory landscape catches up with the growing demand for cryptocurrency investment vehicles. Investors and industry players should remain optimistic and continue to advocate for a fair and transparent approval process.
