September 1 is the deadline for the United States Securities and Exchange Commission (SEC) to decide on requests for ETFs on Bitcoin. This is when Bitwise will know if its ETF will get SEC approval. Five other applicants will have a response from the regulator the next day, while a final one will have to wait until September 4th.
In short
- The SEC will give its verdict on Bitcoin ETFs soon
- An institution still hostile to cryptos
- Towards a victory for the crypto industry?
How will the SEC respond to Bitcoin ETF demands?
Several large fund management companies have initiated Bitcoin ETF applications with the SEC, the stock market watchdog in the United States. On August 29, the United States Court of Appeals ruled that the SEC’s denial of Grayscale’s request to convert his Grayscale Bitcoin Trust (GBTC) into a Spot Bitcoin ETF was “arbitrary and capricious”. Does this defeat mean that the SEC must approve all future applications? James Seyffart, analyst at Bloomberg, made a exit commented by CoinTelegraph in which he states that this defeat at least increases the chances that the pending applications will be approved.
These are particularly 7 requests from financial giants. On September 1, the SEC must rule on Bitwise’s Bitcoin ETF application. On September 2, the decision regarding the requests of five others, namely: BlackRock, VanEck, Wisdomtree, Fidelity and Invesco will fall. Finally, the seventh, Valkyrie is expected to receive a response from the SEC on September 4.
Can the SEC refuse to approve these Bitcoin crypto ETFs?
First, the SEC is not obligated to issue its verdict within the announced deadline. Indeed, the law gives him the possibility of making a final decision within 240 days of filing the application. Which means applicants could be forced to wait until March 2024.
Second, the SEC might just make it easier for itself by completely revoking the listing of Bitcoin futures ETFs. This would be a solution that resolves its conflict with GrayScale; but also with all the other companies that have made this request.
The SEC is not particularly fond of cryptocurrencies, this is now well known. His actions and his aggressiveness have also pushed many crypto companies to seek refuge outside the United States. But can it go so far as to revoke the listing of Bitcoin futures ETFs entirely?
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