The U.S. Securities and Exchange Commission (SEC) has announced a postponement in its decision regarding the approval of spot bitcoin exchange-traded fund (ETF) applications from Invesco (IVZ.N), WisdomTree (WT.N), and Valkyrie. According to a recent filing by the regulatory body, the decision dates for these three proposals have been extended by several weeks, with the new target date set for mid-October. It is possible that further delays could occur, as the initial deadline for a decision was originally scheduled for the upcoming week.
This delay follows closely on the heels of a federal appeals court ruling earlier this week, which declared that the SEC had erred in rejecting an application by Grayscale Investments to establish a spot bitcoin ETF. A three-judge panel from the District of Columbia Court of Appeals in Washington found fault with the regulator’s failure to provide a comprehensive explanation for its denial of Grayscale’s product. As a result, the SEC is now obligated to reevaluate Grayscale’s application. However, it remains uncertain whether this reevaluation will lead to a different conclusion and the approval of the product. The SEC, in response to the ruling, has indicated that it is studying the decision and may potentially pursue an appeal.
Over the past few years, the SEC has consistently turned down numerous applications for spot bitcoin ETFs, primarily citing concerns about the adequacy of trading surveillance measures to safeguard the underlying spot market against fraud and manipulation. Notably, in June, BlackRock (BLK.N), the world’s largest asset manager, entered the scene by filing its own application for a spot bitcoin ETF, a move that was widely seen as a transformative development for the industry and had a positive impact on the price of bitcoin.
(Source: Reuters | Bloomberg)
