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Delays in Approval of Spot Bitcoin ETFs by SEC: BlackRock, Valkyrie, and Bitwise Affected

Delays in Approval of Spot Bitcoin ETFs by SEC: BlackRock, Valkyrie, and Bitwise Affected

SEC Initiates Additional Proceedings for Bitcoin ETFs

The Securities and Exchange Commission (SEC) has announced that it will be conducting further proceedings to determine whether proposed spot bitcoin exchange-traded funds (ETFs) from BlackRock, Invesco, Valkyrie, and Bitwise should be approved or disapproved. This development suggests additional delays to the ongoing review processes. The regulator stated that the institution of proceedings is necessary due to the legal and policy issues raised by the proposed rule change. However, it clarified that this does not indicate any conclusions reached by the Commission regarding the issues involved.

Valkyrie Bitcoin Fund Faces Review

Valkyrie Funds, which already offers a Bitcoin Strategy ETF and a Bitcoin Miners ETF, filed for a spot fund in June. The proposed ETF aims to hold bitcoin to reflect the performance of the CME CF Bitcoin Reference Rate and intends to list shares on Nasdaq under the ticker BRRR. The SEC has requested input from commentators on various aspects of the proposal, such as its ability to prevent fraudulent acts, market liquidity and transparency, and susceptibility to manipulation. Commentators have 21 days to submit their views and arguments, followed by a 35-day period for rebuttals.

Similar Proceedings for Other Bitcoin ETF Proposals

In addition to Valkyrie’s filing, separate proceedings have been initiated for the Bitwise Bitcoin ETP Trust, Invesco Galaxy Bitcoin ETF, and BlackRock’s iShares Bitcoin Trust. These filings also involve comment periods and rebuttals. It appears that the approval process for these ETFs will continue for several more months.

Past Delays in Approving Bitcoin Funds

The SEC had previously delayed the approval of spot bitcoin funds in late August, including those from Fidelity, VanEck, and WisdomTree. Furthermore, the decision on the proposed ARK 21Shares Bitcoin ETF has been postponed until January 10 of next year.

Hot Take: SEC’s Ongoing Delays Reflect Regulatory Caution

The Securities and Exchange Commission’s decision to institute additional proceedings for the proposed spot bitcoin ETFs indicates a cautious approach to regulating these investment vehicles. The SEC is carefully examining the legal and policy issues raised by these ETFs before making any conclusions. This thorough review process, along with previous delays, demonstrates the SEC’s commitment to ensuring investor protection and market integrity in the rapidly evolving crypto industry. While it may prolong the approval timeline, this cautious approach is aimed at mitigating potential risks and fostering a robust and trustworthy market for cryptocurrency investments.

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Delays in Approval of Spot Bitcoin ETFs by SEC: BlackRock, Valkyrie, and Bitwise Affected