Candidates for a bitcoin exchange-traded fund (ETF) received yet another dose of disappointment on Friday as US regulators deferred reaching a judgment regarding such a product. However, it might just be a few weeks until they hear from them again. According to a Bloomberg Intelligence count, the US Securities and Exchange Commission (SEC) must make …
Candidates for a bitcoin exchange-traded fund (ETF) received yet another dose of disappointment on Friday as US regulators deferred reaching a judgment regarding such a product. However, it might just be a few weeks until they hear from them again. According to a Bloomberg Intelligence count, the US Securities and Exchange Commission (SEC) must make a decision about the Bitwise Bitcoin ETP Trust by September 1. Regulators may deny, grant, or postpone. BlackRock, VanEck, WisdomTree, and Invesco applications are slated for decisions the next day, with others following quickly behind. Crypto enthusiasts are keeping track of the dates because anticipation is strong that, unlike previous attempts, an ETF that invests directly in Bitcoin may be approved by regulators this time around. Particularly, many have picked up on the fact that BlackRock, the asset-managing juggernaut, has entered the competition; it has an almost perfect track record of launching ETFs. The path to a potential spot fund hasn’t been simple or quick, though.
We fully anticipate a delay in those choices as well, according to James Seyffart, a Bloomberg Intelligence analyst. The only thing that would alter that opinion is a ruling in Grayscale’s lawsuit against the SEC, and even then, it’s likely that other dates would be delayed as well. While attempting to transform its Bitcoin trust into an ETF, cryptocurrency asset management Grayscale is suing the SEC. For years, there has been a strong desire for a spot-Bitcoin ETF among members of the crypto community and outside supporters. They contend that it would help move the digital-assets area closer to conventional financial markets as well as make investing in Bitcoin more accessible to regular investors. Regulators have continuously refused to authorize such a product, however, citing fraud and manipulation as some of the reasons.
Tyler and Cameron Winklevoss, who established Gemini, were the first company to file for a physically backed Bitcoin ETF in 2013. The SEC turned it down. But the recent excitement has given issuers the confidence to experiment with more creative products in addition to Bitcoin ETFs. A number of businesses have submitted paperwork for funds that combine Bitcoin and ether futures. Such ETFs are not already traded in the US, and earlier in 2023, the SEC denied plans to introduce Ether futures ETFs. According to the Coinbase Bytes newsletter, the introduction of the Volatility Shares 2x Bitcoin Strategy ETF may be another encouraging evidence that the SEC is softening its position on cryptocurrency ETFs. That fund made its debut in June and has accumulated assets worth more than US$20 million (S$27.1 million). When it began trading, it was the first of its type. Initially, the SEC has 45 days to make a decision about the spot fund applications. After then, there are an additional 45 days, then 90, then 60, for a total of 240. Within 240 days, it must decide, according to Mr. Seyffart. Many market watchers predict that there will be another delay in September.
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