The SEC postponed its decision on spot Bitcoin ETF applications from WisdomTree, Invesco Galaxy, Valkyrie, VanEck, Bitwise Asset Management, Fidelity and BlackRock. However, a Bloomberg analyst caught an interesting detail in the SEC’s decisions. Meanwhile, the former SEC chief says spot Bitcoin ETF approval is ‘inevitable’.
Bloomberg analyst found the strange detail in the SEC’s decisions!
The United States Securities and Exchange Commission (SEC) has postponed its decisions on 7 applications for spot Bitcoin exchange-traded funds (ETFs). This postponement decision led to a rout in the market. Following the decision, Bitcoin gave back the gains Grayscale made after the SEC victory. However, there is an interesting detail in the SEC’s decision to postpone 7 applications. Bloomberg analyst James Seyffart found that after the SEC postponed all Bitcoin spot ETF applications, only BlackRock’s application was not included on the web page regarding postponement announcements. About this interesting detail, Seyffart shared the following:
Interesting. The SEC website (at the main point where Bitcoin ETF decision letters should be published) still does not have BlackRock’s deferment letter. They’ve been delayed and elsewhere on the site but still a bit weird. However, the other 6 are also there…
INTERESTING. The SEC website — in the primary spot where the #Bitcoin ETF decision letters are meant to be posted — still doesn't have @BlackRock's delay letter there. They were delayed and Its elsewhere on the site but still kinda strange. All 6 others are there… pic.twitter.com/riW325nUAF
— James Seyffart (@JSeyff) September 1, 2023
BlackRock’s Bitcoin ETF becomes the 7th postponed application
The world’s largest asset manager was expecting to launch an exchange-traded fund in the US for its iShares Bitcoin Trust. However, the SEC delayed global asset manager BlackRock’s application for a Bitcoin exchange-traded fund. As you follow from Kriptokoin.com, the decision regarding BlackRock’s iShares Bitcoin Trust, which has more than $8.5 trillion in assets under management, was postponed following the application to the SEC. In June, BlackRock filed for a BTC-backed ETF. In its filing, it named Coinbase as the intended custodian of the fund’s BTC assets and Bank of New York Mellon as the custodian of its fiat accounts.
BlackRock’s filing outlined the value of the shares in eliminating “the hurdles represented by the complexities and operational burdens inherent in direct investment in Bitcoin.” The ETF delay comes after cryptocurrency asset manager Grayscale Investments filed a petition to overturn the SEC decision on August 29 that initially rejected the listing of the over-the-counter Grayscale BTC Trust (GBTC).
SEC will finally approve spot Bitcoin ETF applications!
Former SEC chairman Jay Clayton says approval of the spot Bitcoin Exchange Traded Fund (ETF) is inevitable. Clayton’s comments come on the heels of a court decision that called the SEC’s earlier rejection of Grayscale’s ETF application “arbitrary and capricious,” which many experts interpreted as paving the way for future approvals. Clayton notes that adjournment timelines align relatively well with the D.C. Circuit Court’s action window. It also suggests that the SEC is taking its time to carefully consider its next moves.
The regulator faces challenges in managing an ever-evolving cryptocurrency landscape. In particular, Clayton points out that trusted financial providers with fiduciary duties are willing to offer BTC products to the individual public, which could potentially increase the level of adoption of the world’s largest cryptocurrency. Major financial institutions claim that cash markets for Bitcoin are now robust enough to withstand manipulation. Clayton admits that too.
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