The U.S. Securities and Exchange Commission (SEC) has announced a delay in the decision-making process for Bitcoin exchange-traded fund (ETF) applications from six out of seven companies—Fidelity, WisdomTree, Valkyrie, VanEck, Bitwise, and Invesco. The regulatory agency cited the need for an additional 45 days to review the applications, extending the deadline to mid-October. Rumors are swirling that BlackRock, the final applicant awaiting a verdict, might also face a similar postponement.
SEC’s Standard Procedure and Future Actions
This delay conforms to the customary approach of the SEC. Following the publication of a proposal in the federal register, the commission frequently signals whether further time is required for evaluation within 45 days. The SEC holds a maximum of 240 days to finalize decisions for these six Bitcoin ETF applications. Though the exact reason remains unspecified, the SEC has expressed the necessity for extended scrutiny of the proposals and associated concerns
On August 11, the SEC had already deferred its decision on an Ark 21Shares Bitcoin ETF, announcing the intention to seek public input and initiate proceedings for trading approval. Adding to the list of delays, rumors speculate that the SEC may postpone its verdict on a Bitcoin ETF proposal from BlackRock, initially anticipated by week’s end. If accurate, all seven Bitcoin ETF applications would face SEC-induced delays. Market experts speculate potential approvals by late 2023 or 2024. Following Grayscale Investments’ success against the SEC in the DC Circuit Court of Appeals, Bloomberg Intelligence analysts elevated the probability of Bitcoin ETF approval by the end of 2023 from 65% to 75%.
SEC Chair Gensler’s Stance on Cryptocurrencies
SEC Chair Gary Gensler’s regulatory approach towards cryptocurrencies has generated controversy. Representative Patrick McHenry criticized Gensler’s assertive approach to digital assets, branding it excessively aggressive. Gensler is scheduled for two September congressional testimonies: before the Senate Banking Committee on September 12 and the House Financial Services Committee on September 27.
In April, the House Committee on Financial Services accused Gensler of misrepresenting the SEC’s authority by urging crypto firms to register without a clear framework. Notably, the SEC has yet to greenlight any Bitcoin ETFs, reflecting its measured stance. The SEC insists on thorough consideration of applications and related concerns.
Given the SEC’s prior postponement of the Ark 21Shares Bitcoin ETF, these delays come as no surprise. The regulator has established deadlines and a 240-day window to address applications. As multiple companies await decisions, the upcoming months hold significance for the future trajectory of Bitcoin ETFs.
