The SEC Delays Decision on Bitcoin ETFs
The U.S. Securities and Exchange Commission (SEC) has once again delayed its decision on approving the country’s first spot Bitcoin exchange-traded fund. The postponement affects applications from Franklin and Globe X, adding to the uncertainty surrounding the approval of crypto-based investment products. The deferral follows delays for other applicants, with both companies filing later than their competitors. This comes as interest in cryptocurrency-based ETFs is on the rise, highlighted by Fidelity Investments’ recent filing for an Ethereum spot Exchange Traded Fund (ETF) product with the SEC. BitGo CEO Mike Belshe anticipates further obstacles for spot Bitcoin ETF approval in the U.S. due to unresolved market structure issues.
Crypto Bulls Regaining Momentum
Grayscale’s recent legal victory against the SEC has sparked optimism for Bitcoin and altcoins. The decision has boosted Ripple’s XRP and ignited discussions about increased institutional participation in the crypto sector. These positive developments have led to Bitcoin experiencing a nearly 30% rally over the past month, with the global crypto market cap standing at $1.44 trillion. However, ongoing developments in the SEC v. Ripple lawsuit and the broader regulatory framework continue to shape the cryptocurrency market’s trajectory.
No ETF Hope in Sight
Additionally, the SEC has extended the timeframe for its decision on Hashdex’s application to convert its Bitcoin futures exchange-traded fund (ETF) to a spot vehicle. The agency has also deferred its decision on Grayscale’s proposal to introduce an Ether ETF based on futures. Both Hashdex and Grayscale submitted filings to convert their Bitcoin futures ETFs into spot Bitcoin ETFs. Concerns about market manipulation and surveillance-sharing agreements have yet to be resolved, causing delays.
Hot Take: The Future of Crypto-Based Investment Products
The delay in the decision on Bitcoin ETFs by the SEC reflects the prevailing uncertainty and challenges surrounding the approval of crypto-based investment products. Grayscale’s legal victory has generated optimism in the market, but ongoing regulatory developments will continue to impact the trajectory of cryptocurrencies such as Bitcoin and Ether. With multiple applications pending and unresolved concerns about market manipulation and surveillance-sharing agreements, the path to approval for crypto-based investment products remains uncertain. Future developments in the regulatory landscape will greatly influence the future of cryptocurrency-based ETFs in the U.S.
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