The United States Securities and Exchange Commission (SEC) has decided to postpone its judgments on six applications for spot Bitcoin exchange-traded funds (ETFs). According to SEC filings, the commission has designated a longer period to review these applications from WisdomTree, VanEck, Invesco Galaxy, Bitwise, Valkyrie, and the Wise Origin Bitcoin Trust proposed by Fidelity. This extension grants the SEC an additional 45 days to consider the proposed rule changes allowing the listing of these investment vehicles. Ultimately, the regulator now has until October to approve, deny, or further delay a decision on these ETF applications.
These delays come after speculation that the SEC might approve a spot Bitcoin ETF for the first time in the U.S., following the commission’s loss in a crucial court case brought by asset manager Grayscale. On August 29, an appellate court ruled that the SEC would need to review Grayscale’s petition to convert its Bitcoin Trust into an ETF. This ruling led many experts to suggest that the odds of at least one spot crypto ETF gaining approval had significantly increased.
WisdomTree’s Bitcoin ETF proposal had previously been denied by the SEC in 2021. However, after BlackRock entered the spot Bitcoin ETF race, WisdomTree refiled its application. Additionally, several firms, including WisdomTree, Valkyrie, Fidelity, VanEck, Bitwise, and Invesco, have crypto ETF applications waiting in the SEC pipeline. Notably, BlackRock and ARK Invest also have pending applications. With the SEC’s decision to delay the approval process, it is uncertain which application will be reviewed first. Many anticipated that Bitwise’s BTC investment vehicle would receive a decision or a delay first, as its deadline was set for September 1.
The SEC’s decision to delay these ETF applications might have been influenced by the upcoming Labor Day holiday, which falls on September 4 in 2023. As Labor Day is a national holiday in the U.S., the commission may want to address these filings before the extended weekend.
It is important to note that the SEC’s postponement also applies to Fidelity’s Wise Origin Bitcoin Trust and the ETF offering from VanEck, both of which now face a longer period of review.
In conclusion, the SEC has chosen to delay its decisions on six spot Bitcoin ETF applications, giving itself more time to consider the proposed rule changes. This comes after the regulatory body lost a court case and experts suggested a higher likelihood of approval for at least one spot crypto ETF. The delay affects several prominent firms, including WisdomTree, VanEck, Invesco Galaxy, Bitwise, Valkyrie, and Fidelity. The SEC’s decision to postpone the review process may be influenced by the upcoming Labor Day holiday.