Bitcoin ETF's Future Uncertain as SEC Set to Rule on Key Filings
Bitcoin ETF applications are facing a pivotal moment, with the U.S. Securities and Exchange Commission (SEC) slated to respond to several key filings right before the upcoming Labor Day weekend.
Financial giants BlackRock, VanEck, Invesco, Bitwise, and WisdomTree all await the regulator's response, which could come as early as this Friday for Bitwise and the following day for the others. The choices before the SEC include either approval, rejection, or further delay. The SEC's decision holds significant implications for the integration of digital assets with traditional financial markets.
Historically, the SEC has exhibited a pattern of deferring decisions related to cryptocurrency. In early August, for instance, the commission postponed its verdict on 21Shares' spot-Bitcoin application in collaboration with ARK Investment Management. Over the past decade, several applications faced rejection.
Last year, the SEC rejected an effort by Grayscale Investments to transform its Bitcoin trust into an ETF. Citing concerns over market manipulation and fraud, the regulator declined the application. In response, Grayscale filed a lawsuit, asking the DC Circuit Court of Appeals to overturn the decision, contending that it was inconsistent and discriminatory, especially since the SEC had previously greenlit ETFs tracking Bitcoin futures.
Experts in the financial sector have expressed limited optimism for immediate approvals. Roxanna Islam from VettaFi commented on the matter to Bloomberg, explaining that it wouldn't be surprising to witness further delays from the SEC.
“We can expect to see more delays from the SEC especially after they already delayed their decision earlier this month on ARK’s spot-Bitcoin ETF filing,” she said. “We
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