SEC Delays BlackRock’s Bitcoin ETF Application
The US Securities and Exchange Commission (SEC) has once again postponed the approval of BlackRock’s application for a Spot Bitcoin ETF. The SEC has requested written comments on whether the iShares Bitcoin Trust should be approved or disapproved, extending the decision deadline to January 15, 2024.
SEC’s Request for Comments
The SEC specifically wants feedback on whether the Chicago Mercantile Exchange (CME) is a significant regulated market for spot Bitcoin and the correlation between the Bitcoin spot market and CME Bitcoin futures market. This move seems unnecessary since a court ruling in Grayscale’s case against the SEC stated that there was no reason for different regulatory treatment of ETFs related to both markets.
Deadline Extension for Other ETF Applications
Similarly, the SEC has extended the decision deadline for Bitwise, Invesco, and Valkyrie’s Spot Bitcoin ETF applications to January 2024. However, the SEC can still further delay these applications before making a final decision. The SEC also needs to decide on the ARK 21Shares Bitcoin ETF by January 10, 2024.
Valkyrie’s Approval for ETH Futures Contracts
Valkyrie received approval to offer exposure to ETH futures contracts through its Valkyrie Bitcoin and Ether Strategy ETF. This allows US investors to bet on the future price of Ethereum. Bloomberg Analyst James Seyffart confirmed that Valkyrie will start holding a small percentage of ETH futures from September 29 and will switch to a 50% ETH and 50% BTC allocation from next week.
Hot Take: Mixed Results for Crypto ETFs
The SEC’s continued delays in approving Bitcoin ETF applications are frustrating for the crypto industry. While BlackRock’s application faces further postponement, Valkyrie managed to secure approval for ETH futures contracts. This move positions Valkyrie as the first to offer US investors exposure to Ethereum’s future price. These developments highlight the SEC’s cautious approach towards crypto ETFs and its impact on market participants.
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