The U.S. Securities and Exchange Commission (SEC) has postponed its decision on Bitcoin exchange-traded fund (ETF) applications from WisdomTree, VanEck, Invesco Galaxy, Bitwise, Blackrock, and Valkyrie, including Fidelity’s Wise Origin Bitcoin Trust proposal.
The SEC has rescheduled its review of these spot Bitcoin ETF applications, providing an additional 45 days from the publication in the Federal Register for a decision, which extends until October. This delay comes amid speculation that the SEC might approve a spot Bitcoin ETF in the U.S. following a court ruling against asset manager Grayscale, instructing the SEC to assess its petition to convert the Bitcoin Trust into an ETF.
WisdomTree faced rejection for its Bitcoin ETF proposal in 2021 but refiled after BlackRock entered the competition. The recent court ruling increased expectations for the approval of at least one spot crypto ETF.
BlackRock emphasized the significance of shares in overcoming complexities and operational burdens associated with direct Bitcoin investment. The SEC’s extension, giving them until October 17 to decide on BlackRock’s application, follows a request from Grayscale Investments, which won a legal dispute against the SEC’s initial rejection of its Grayscale Bitcoin Trust (GBTC) on August 29.
Read more about the Grayscale legal dispute here.
Many in the crypto community see the potential approval of a spot Bitcoin ETF, especially one backed by BlackRock, as a positive signal for increased adoption. The SEC’s extended timeline allows for approval, rejection, or further postponement of BlackRock’s application.
