All eyes are on the US Securities and Exchange Commission (SEC) this week as the first Bitcoin ETF deadlines loom amidst Grayscale’s victory.
The prospect of a Bitcoin ETF hitting the market has been one of the most widely anticipated topics of the year. When BlackRock, the world’s largest asset manager, filed its ETF application in June, Bitcoin soared above $31,000 – the highest it’s been all year.
Bitcoin has since pulled back as excitement waned, but the market can expect fresh action soon – good or bad – as the SEC’s first Bitcoin ETF decision deadline inches closer.
Here are the dates to watch out for, according to SEC filings:
- September 1: Bitwise
- September 2: BlackRock, VanEck, Fidelity, Invesco and Wisdomtree
- September 4: Valkyrie
The Commission has a full 240 days to make a final decision, which will come in March at the very latest. The first deadlines however are crucial for driving sentiment.
The SEC has made it clear that it doesn’t like crypto: not only has it filed a slew of lawsuits against industry giants including Binance and Coinbase, it recently turned its focus to the NFT market, charging wellness media platform Impact Theory with selling NFTs as unregistered securities.
The Commission however faced a major setback on August 29, when it lost its lawsuit with Grayscale pertaining to a Bitcoin ETF.
Initially, the SEC ruled that Grayscale, an asset manager with $50 billion AUM, could not convert its flagship Bitcoin product, GBTC, into a Bitcoin ETF, because the product was not “designed to prevent fraudulent and manipulative acts and practices.”
In response, Grayscale sued, winning favour with the Court of Appeals, who ruled that the SEC’s rejection was “arbitrary and capricious”.
While the outcome doesn’t ensure that Grayscale will be able to list its Bitcoin ETF, it’s a step in the right direction. James Seyffart, a Bloomberg Intelligence analyst, said on August 29 that the decision “definitely” increases the chances of success for future applications.
Approval would be monumental for Bitcoin, which would see widespread institutional adoption.
The Commission however may choose to delay its decision, leaving investors teetering until mid-March, which would mark the 240th day. This is what happened earlier this month, when Ark Invest and 21Share’s deadline came around.
Disclaimer: CryptoPlug does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.