The US Securities and Exchange Commission (SEC) has announced delays in its decisions on four applications related to spot exchange-traded funds (ETFs). These exchange-traded spot funds are offered by Fidelity, Wisdomtree, Inosco and Valkyrie. The Securities and Exchange Commission has extended the decision-making schedule until at least mid-October. The Securities and Exchange Commission announced that it needs more time to review the proposed rule changes and the issues raised by these requests. It is worth noting that the Securities and Exchange Commission has been cautious about approving spot funds that can be traded on the Bitcoin exchange due to concerns about fraud and manipulation. While the SEC approved the first bitcoin exchange-traded futures fund in 2021, it has yet to greenlight a spot product. The news affected the price of Bitcoin, causing it to drop 3.8% in 24 hours to $26,209 at the time of reporting. Therefore, the assignment of Bitcoin ETF exchange funds has been delayed by the Securities Commission for up to 45 days.
Several asset management firms, including OneAc and BitWise, have also submitted applications for bitcoin exchange-traded spot funds, and their proposals are also expected to be reviewed at a later date. Some analysts speculate that the SEC may decide on all the requests at once.
The delays come after the cryptocurrency industry celebrated a legal victory in a case involving asset management company Grayscale. Grayscale is looking to convert its main bitcoin investment fund, GBTC, into an exchange-traded fund. While the court’s decision doesn’t guarantee immediate approval of a bitcoin exchange-traded fund, it does mean the SEC will have to reconsider Grayscale’s proposal. Follow the hot news of the Securities Exchange Commission and the cryptocurrency industry here