SEC Delays Bitcoin ETF Decisions Until 2024: Will $20K or $40K Be Next?
• The SEC is likely to take up to 240 days of the review process before approving any of the Bitcoin ETF applications.
• Prominent asset management companies such as BlackRock, ARK Invest, Bitwise Asset Management, VanEck, WisdomTree, Invesco, Galaxy Digital, Fidelity and Valkyrie have filed for a Bitcoin ETF with the SEC.
• The unique nature of spot crypto ETFs makes it difficult for them to gain approval from the SEC.
SEC Delays All Bitcoin ETF Decisions Until 2024
The U.S. Securities and Exchange Commission (SEC) has extended its review period by 21 days to allow public input on all proposed Bitcoin exchange-traded funds (ETFs). This means that decisions regarding the approval of all pending applications are likely to be reached no earlier than early 2024.
Asset Management Companies File For A Spot Crypto ETF
In June 2023, BlackRock – one of the world’s largest asset management firms – submitted its application for a spot BTC ETF with the SEC joining numerous other companies that had done so in prior months. Other notable applicants include ARK Invest led by CEO Cathie Wood who filed their ARK 21Shares spot Bitcoin ETF in May 2023 along with Bitwise Asset Management, VanEck, WisdomTree, Invesco, Galaxy Digital, Fidelity and Valkyrie.
Why Is The US SEC Reluctant To Approve A Spot Crypto ETF?
Unlike futures-linked crypto exchange-traded funds which allow investors to invest in cryptocurrencies without owning them directly; spot crypto exchange-traded funds require actual ownership of digital assets held in a fund for more direct investment opportunities. This makes it difficult for these types of investments vehicles to gain approval from the federal regulator due to potential market manipulation risks that would arise if these were approved.
What Does This Mean For The Crypto Market?
The delay in decisions regarding any pending applications could mean bad news for investors eager to get involved with this type of investment vehicle as it may be as late as early 2024 when we start seeing some approvals being given out by the regulatory body. On a positive note however this could also mean that each application will be thoroughly reviewed before any decision is made ensuring only safe investments are put forward into the market place when they are eventually approved..
It seems unlikely that we will see any decision made regarding proposed spot crypto exchange-traded funds until at least early 2024 considering how long and thorough reviews can take on each individual proposal made by asset management companies looking into this avenue of investing in cryptocurrencies