7 Spot Bitcoin ETFs Face Extended Wait as SEC Seeks Deeper Analysis
The U.S. Securities and Exchange Commission (SEC) has deferred decisions on seven spot bitcoin exchange-traded fund (ETF) applications from Invesco Galaxy, Wisdomtree, Bitwise, Vaneck, Fidelity’s Wise Origin, Blackrock, and Valkyrie. In statements released on Thursday, the SEC underlined the necessity for a more extended timeframe to thoroughly assess the submitted propositions.
SEC Delays Spot Bitcoin ETF Decision for 7 Major Applicants
On August 31, the U.S. securities overseer resolved to postpone its verdict in order to allocate a lengthier period for scrutinizing the proposed rule amendments for seven distinct spot bitcoin ETFs.
The regulator elaborated that this step ensures ample time for the SEC to meticulously examine the proposal and address any worries raised.
Decisions for the collection of filings originating from Wisdomtree, Valkyrie, Bitwise, Fidelity’s Wise Origin, Vaneck, Blackrock, and Invesco Galaxy will be extended until mid to late October. Unfortunately, the Bitwise filing hosted on the SEC web portal leads to a 404 website error.
“The [SEC] deems it suitable to designate an extended duration within which to act on the proposed rule change so that it has adequate time to contemplate the proposed rule change and the matters raised therein,” the Wisdomtree delay notification elucidates.
This deferment comes on the heels of Grayscale’s recent legal triumph and Bloomberg ETF specialists Eric Balchunas and James Seyffart estimating a 75% possibility of spot bitcoin ETF authorization in 2023. The U.S. regulator started reviewing the applications over the past month.
Blackrock was the first to roll the dice in 2023 to try and secure approval for a spot bitcoin ETF following numerous rejections by the U.S. securities watchdog in prior instances over the years. Subsequent to Blackrock’s initiative, several other firms pursued similar aspirations in hopes of gaining approval as well.
While the SEC has authorized bitcoin (BTC)-based futures ETFs, it has not yet approved any spot bitcoin funds within the United States. Balchunas said on Thursday, that despite the delays, the chances of approval are still at 75%.
What do you think about the SEC delaying seven spot bitcoin ETFs on Thursday? Share your thoughts and opinions about this subject in the comments section below.