The U.S. Securities and Exchange Commission (SEC) has opted to delay its decision on seven spot Bitcoin exchange-traded fund (ETF) applications, including one from the financial giant, BlackRock. This move, announced in a recent agency filing, has pushed the decision timeline to October, marking yet another postponement in the ongoing saga of Bitcoin ETF approvals.
Among the applicants awaiting the SEC's verdict are prominent names such as VanEck, WisdomTree, Fidelity (under the Wise Origin banner), and Invesco, all of whom have applied through the Cboe BZX Exchange. Additionally, Valkyrie Investments and BlackRock have submitted their applications to offer spot Bitcoin ETFs via Nasdaq. Bitwise, another contender in the race, has chosen the NYSE Arca for its product offering.
The SEC has outlined its new decision dates, with the majority set for October 17. However, Bitwise can expect a ruling by October 16, while Valkyrie's decision is slated for October 19. The regulatory body justified this delay, stating the need for "sufficient time to consider the proposed rule change and the issues raised therein."
This postponement did not come as a complete surprise to industry observers. Bloomberg Intelligence ETF analysts, James Seyffart and Eric Balchunas, had previously predicted a potential delay. Their forecast was based on the recent legal setback the SEC faced against Grayscale Investments in the DC Circuit Court of Appeals. The analysts had noted, "There's a slim chance that the SEC could approve everything at once, including Grayscale's GBTC conversion. We see that as highly unlikely so soon after the court decision."
Despite the anticipation and optimism surrounding the spot Bitcoin ETF applications, the SEC has yet to greenlight any such proposals. It's crucial to note that the regulator isn't bound to approve any applications by its self-imposed deadlines.
The crypto market's response to this delay was palpable. As of the last report, Bitcoin was trading at $25,983.22, marking a 4.75% decrease over the previous 24 hours. The cryptocurrency's total market capitalization stood at approximately $505.92 billion.
This latest development underscores the regulatory challenges and uncertainties surrounding the crypto industry, even as institutional interest in digital assets continues to grow. The SEC's final decisions on these applications will undoubtedly have significant implications for the future of Bitcoin ETFs and the broader crypto market in the U.S.
