SEC Postpones Bitcoin ETF Decision, Extends Review Period
The United States Securities and Exchange Commission (SEC) has announced a delay in announcing the outcomes for the seven leading applicants seeking to launch a Bitcoin ETF in the US. The SEC stated that it requires extra time to review the proposed rule change for allowing the listing and trading of spot Bitcoin ETFs on the stock exchange.
Key Points:
- SEC extends the decision period for Bitcoin ETF applicants by an additional 45 days.
- BlackRock, VanEck, WiseOrigin, Invesco Galaxy, WisdomTree, Bitwise, and Valkyrie Digital Assets are among the seven applicants affected.
- Two applicants have different deadlines—one on October 17 and the other on October 19.
- The SEC will either approve, disapprove, or institute proceedings to determine whether to disapprove the proposed rule change by October 19.
- Bitcoin’s price has declined by approximately 4.67% in the past 24 hours.
This delay comes after the SEC had published the proposed rule change on July 19, allowing for public input. However, the Commission has opted for an additional 45-day extension to thoroughly consider the proposed rule change and the raised issues. The decision dates for the five applications affected by the extension have been shifted to October 17, with Bitwise’s deadline, and October 19, with Valkyrie Digital Assets’ deadline. It remains uncertain how the SEC will ultimately decide on the Bitcoin ETF applications.
Hot Take:
The SEC’s decision to postpone the Bitcoin ETF outcomes indicates the regulatory body’s cautious approach towards approving such financial products. While many applicants are vying to launch a Bitcoin ETF, the SEC is taking its time to carefully review the proposed rule change and the potential impact on the market. This delay highlights the complexities and uncertainties surrounding the regulation of cryptocurrencies in the US.
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