After recently overturning a decision that blocked Grayscale’s Spot Bitcoin ETF, a Washington court had many expecting the SEC to follow suit for other pending applications. Contrary to those expectations, the SEC announced that it’s delaying a decision not just on BlackRock’s Spot Bitcoin ETF but also on applications from Valkyrie, WisdomTree, and Invesco.
Why the Delay?
According to documents released by the SEC, the regulatory body needs more time to consider the rule changes proposed in these ETF applications. “The Commission finds it necessary to extend the review period to address the proposed changes and related concerns adequately,” the documents stated. Now, the SEC has given itself an additional 45 days to make a decision.
A Waiting Game for Companies and Investors
This delay comes on the heels of a significant Bitcoin price surge, with the leading cryptocurrency rallying over 50% this year. As a result, the SEC’s stalling tactics aren’t just impacting companies like BlackRock; they’re also affecting potential investors eagerly waiting for market-approved investment channels.
What’s Next?
The SEC isn’t just stopping at these four applications. It also has until September 1 to address an application from Bitwise. Moreover, filings from other major players like VanEck and Fidelity are also awaiting a decision. Many believe that the SEC might appeal the court’s recent pro-ETF decision involving Grayscale, leading to further delays in the approval process.
By slowing down the approval process for Spot Bitcoin ETFs, the SEC continues to keep the market in a state of anticipation. With the clock ticking and market conditions fluctuating, it’s a high-stakes period for both the regulatory body and hopeful investors.
