SEC Delays Approval of Bitcoin Spot ETFs for Wall Street Giants - Bitcoin Volatility Surges
The U.S. Securities and Exchange Commission (SEC) recently postponed its decision on applications for Bitcoin spot ETFs from major Wall Street players.
SEC Delays Approval of Bitcoin Spot ETFs - Bitcoin Volatility Surges
On the first morning of September, the SEC delayed making a decision on all filings for Bitcoin spot ETFs from BlackRock, Fidelity, WisdomTree, Valkyrie, VanEck, Invesco, Wise Origin, and Bitwise. It will not be until mid-October at the earliest before the SEC determines whether to approve them.
Regarding WisdomTree's application, the agency stated that additional time is needed for careful consideration before a final announcement.
Despite being within expectations among experts, this news still caused Bitcoin prices to slide down to $25,655 early this morning. Over the 24-hour period, the market-leading cryptocurrency lost all gains achieved during the surge on August 30, dropping nearly 5% and trading around $25,981.
15-minute chart of BTC/USDT pair on Binance as of 06:20 AM on September 01, 2023
As previously reported by Coin68, early July saw a wave of applications from Wall Street giants seeking operational licenses for Bitcoin spot ETFs, including BlackRock, Fidelity, WisdomTree, Valkyrie, VanEck, Invesco... SEC has set a 240-day review period (deadline by 14-15/2024) to make final decisions - approval, rejection, or further delays - for each application.
Timeline for SEC approval/rejection of Bitcoin ETFs
While SEC has approved several ETF futures applications, it has consistently rejected spot product applications. The rationale behind the SEC's decision is that the spot market has yet to address issues such as speculation, fraud, and manipulation.
However, following Grayscale's recent victory over the SEC, Bloomberg has raised the likelihood of approval for Bitcoin spot ETFs to 75%. Even in the event of a setback, analysts predict a 95% chance that the first Bitcoin spot ETF could appear before the end of 2024. It is important to note that a court ruling does not imply SEC's approval for Grayscale's request to convert GBTC trust into a Bitcoin ETF.
