SEC Extends Bitcoin ETF Approval Deadlines to Early 2024
The SEC has the option to extend its decision-making process for crypto ETF applications by up to 240 days, which means that some companies might not receive decisions on filings submitted in July 2023 until March 2024.
Because Bitcoin
August 15, 2023
Cointelegraph reported that numerous firms, including ARK Invest and Bitwise Asset Management, have submitted crypto ETF applications in the SEC pipeline. The SEC has the authority to delay ETF applications for up to 240 days, often through public comments. However, it has yet to approve a spot Bitcoin ETF in the US, only accepting BTC futures-based investment vehicles since 2021.
Challenges to approving a spot crypto ETF might stem from its nature. Bitcoin futures-linked ETFs allow investment without direct exchange, whereas a spot BTC ETF might require holding actual Bitcoin in a fund. The history of SEC rejections also plays a role, with past applications facing obstacles, like the Winklevoss brothers' Bitcoin Trust in 2013.
Despite ongoing negotiations and discussions, the SEC has not significantly advanced the argument for a spot crypto ETF. As asset management firms like BlackRock, ARK Invest, Bitwise, and others await approval, the final decision for various offerings could be as late as March 2024.
The SEC's hesitation to approve a spot crypto ETF may arise from the evolving nature of the US crypto market, which lacks comprehensive clarity and oversight. Ongoing enforcement actions against major players like Coinbase and Ripple, coupled with legal considerations, create a complex landscape. The SEC's Chair, Gary Gensler, holds substantial influence, and the political composition of the commission also impacts decisions.
Analysts estimate a 65% likelihood of a US spot Bitcoin ETF approval, influenced in part by BlackRock's application. Industry figures like Cathie Wood and Grayscale anticipate potential simultaneous approvals to maintain fairness among applicants.
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