ETFs might not be as close as believed as the SEC delays its decision.
The US Securities and Exchange Commission (SEC) postponed a decision on the approval of applications for spot Bitcoin exchange-traded funds (ETF).
The regulator filed a document on August 31st, requesting the delay on applications from the interested firms, including Invesco, WisdomTree and Valkyrie.
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Initially, the regulator had to make the decision next week, but now it’s been pushed back to October 19th, and the commission will either give its approval or disapproval on the matter at that time. Reportedly, the SEC could potentially delay it even further.
The pushback comes on the heels of the court decision that the SEC wrongfully rejected Grayscale Investments’s application for spot Bitcoin ETF.
According to the court ruling, the SEC failed to provide sufficient reasoning for the rejection, and the agency was ordered to review the request and make a fair decision. The SEC still has the option to appeal this decision.
It counted as a win for the crypto community, and there were speculations that the first-ever Bitcoin ETF could be on the horizon. However, the delay dampened such hopes.
ETFs, by their nature, are investment funds that are regulated by the SEC, and the issued shares are considered securities that must be registered with the agency. Bitcoin ETF, in turn, would simplify Bitcoin trading, allowing customers to track the asset’s price and engage in crypto trade in a more traditional trading framework.
The SEC rejected multiple applications for Bitcoin ETFs, citing the volatility of the assets. However, the interest is only growing, as evident by major financial institution BlackRock’s application for Bitcoin Spot ETF.