SEC Delays Decision on Bitcoin ETFs
The US Securities and Exchange Commission (SEC) has postponed its decision on approving spot Bitcoin exchange-traded funds (ETFs). The SEC also delayed a decision on a Bitcoin ETF application from Global X until at least November. This suggests that the regulator may also push back decisions on applications by other firms, including BlackRock, WisdomTree, Invesco Galaxy, Valkyrie, Bitwise, VanEck, and Fidelity. The delay is seen as a significant setback for the crypto industry, which was hoping for early approval of spot crypto ETFs to boost demand and lift prices. Former SEC chair Jay Clayton believes that the approval of spot Bitcoin ETFs is inevitable.
Pressure Mounts on SEC
Four members of Congress have written a letter to SEC Chair Gary Gensler urging him to immediately approve the listing of spot Bitcoin ETFs. The bipartisan letter accuses the SEC of discrimination for allowing crypto futures ETFs but not spot investment products. The lawmakers argue that approving a regulated spot Bitcoin exchange-traded product would offer increased protection for investors by making access to Bitcoin safer and more transparent. They emphasize that Congress has a responsibility to ensure that the SEC approves investment products that meet congressional requirements and urge immediate approvals for spot crypto ETF applications.
Hot Take: SEC Delays Decision on Bitcoin ETFs Amidst Growing Pressure
The US SEC’s decision to delay the approval of spot Bitcoin exchange-traded funds (ETFs) has disappointed the crypto industry. Many were hopeful that the approval would boost demand and help improve prices. However, with the postponement, it seems that further delays are likely for other applications as well. This setback comes after Grayscale Investments’ court victory against the SEC’s decision to approve Bitcoin futures ETFs while rejecting spot Bitcoin ETFs. The pressure on the SEC is mounting as four members of Congress recently wrote a letter urging immediate approval for spot Bitcoin ETFs. The industry is now eagerly awaiting the SEC’s decision in early 2024.
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