As expected, the US Securities and Exchange Commission (SEC) has chosen to delay its decision on spot Bitcoin ETFs, including BlackRock’s.
After much anticipation, the US Securities and Exchange Commission (SEC) has opted to delay its decision on seven spot Bitcoin exchange-traded fund (ETF) applications, filings reveal.
While the delay is disappointing, it isn’t surprising. The Commission has a full 240 days to make a final decision, and in most circumstances, it uses the full amount of time to review and hear public comment.
It’s also not a light decision to make: a spot Bitcoin ETF would be the very first of its kind on the market, and would signal a big shift toward institutional adoption, which many in government are radically opposed to.
Bitcoin has recoiled since news of the delay broke. BTC is down 4.6% in the past 24 hours and is trading at $25,980, per CoinGecko data.
The news comes in light of a major setback for the Commission on August 29, when it lost its lawsuit with Grayscale pertaining to a Bitcoin ETF.
Grayscale, an asset manager with $50 billion AUM, sued the SEC after the Commission barred the company from converting its flagship Bitcoin product, GBTC, into a Bitcoin ETF. The Commission asserted that the product was simply not “designed to prevent fraudulent and manipulative acts and practices.”
Grayscale’s action against the decision won 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.
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