The United States Securities and Exchange Commission (SEC) is facing important deadlines as it considers seven new Bitcoin (BTC) spot exchange-traded fund (ETF) applications. The latest deadline is September 4. This comes after the SEC’s defeat to Grayscale Investments in a U.S. federal appeals court.
Several firms, including Bitwise, BlackRock, VanEck, Fidelity, Invesco, and Wisdomtree, will find out if their ETF applications have been approved by the SEC on September 1 and 2, according to SEC filings. Valkyrie will receive the SEC’s decision on September 4. These decisions will have a significant impact on the cryptocurrency industry.
On August 29, the U.S. Court of Appeals ruled that the SEC’s rejection of Grayscale’s application to convert its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF was “arbitrary and capricious”. However, this ruling does not guarantee approval for Grayscale’s application or future applications. This ruling only increases the likelihood of success for future ETF applicants, according to Bloomberg ETF analyst James Seyffart.
Seyffart explained in a recent Bloomberg interview that the SEC has two more proposed deadlines before it is required to make a final decision on the 240th day post-filing. The final deadlines for all ETF applicants are in mid-March next year. The SEC has the option to delay its decisions, creating uncertainty for the applicants.
Following Grayscale’s win, the SEC has 90 days to file an appeal with the U.S. Supreme Court or apply for an En banc review, where a full circuit court can overturn a ruling made by a three-judge panel. It is unclear what the SEC’s next move will be.
Seyffart believes that the SEC only has two viable options. The first option is for the SEC to approve Grayscale’s conversion of its GBTC to a Bitcoin spot ETF. The second option is for the SEC to revoke the listing of Bitcoin futures ETFs entirely or deny Grayscale’s application based on a new argument. However, Bloomberg ETF analyst Eric Balchunas considers it highly unlikely for the SEC to revoke the Bitcoin futures ETFs, as the SEC has shown openness to Ethereum futures ETFs.
The decisions made by the SEC in the coming days and weeks will have a significant impact on the cryptocurrency market. Approval of these Bitcoin spot ETF applications could open the door for increased institutional investment in Bitcoin, potentially driving up its price and increasing its legitimacy as an asset class. On the other hand, if the applications are denied, it could dampen enthusiasm and slow down the growth of the cryptocurrency market.
Overall, the cryptocurrency and investment communities eagerly await the SEC’s decisions on these Bitcoin spot ETF applications. The outcomes will shape the future of cryptocurrency investment and regulation in the United States.
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