Spot Bitcoin ETF Decision Delayed by SEC
The U.S. Securities and Exchange Commission (SEC) has postponed the decision on the Global X Bitcoin Trust’s application to list a spot bitcoin exchange-traded fund (ETF). This announcement, made on November 17, 2023, adds further uncertainty to the spot bitcoin ETF space.
Global X Bitcoin Trust Proposal
The Global X Bitcoin Trust aims to provide investors with exposure to bitcoin (BTC) through an ETF structure, potentially broadening the crypto asset’s appeal. The proposal, initially filed on August 4, 2023, by the Cboe BZX Exchange, seeks to list and trade shares of the trust under the exchange’s commodity-based trust shares rules.
SEC Rationale for Delay
In its order, the SEC cited the need for further analysis on whether the proposed ETF aligns with the Securities Exchange Act’s requirements. The commission is particularly evaluating the proposal’s consistency with the Act’s mandates, which include preventing fraudulent and manipulative acts and protecting investors and public interest.
The SEC’s Concerns and Review
The SEC’s primary concerns revolve around the liquidity and transparency of the BTC market and its susceptibility to manipulation. The commission is seeking additional public input and a thorough assessment of these concerns, especially regarding the resistance of the bitcoin market to price manipulation.
SEC’s Invitation for Public Comments
The SEC is actively seeking public comments, data, and arguments on the proposal. Interested parties have 35 days to submit their views before the SEC makes a decision on the Global X filing.
Hot Take: SEC Continues Evaluation of Spot Bitcoin ETF
The SEC’s decision to delay its ruling on the Global X Bitcoin Trust’s spot bitcoin ETF does not indicate a final disapproval. The regulator is seeking public input and further analysis to ensure the proposal aligns with the Securities Exchange Act’s requirements, showing that the SEC is taking a cautious approach to the potential listing of a spot bitcoin ETF.
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