SEC to Respond to Bitcoin ETF Applications Ahead of Labor Day
The U.S. Securities and Exchange Commission (SEC) is set to make critical decisions on several key Bitcoin ETF applications, with financial behemoths including BlackRock, VanEck, and Invesco among the applicants.
The regulator could unveil its stance as soon as this Friday for Bitwise, with announcements for others expected the subsequent day. Approvals, rejections, or further postponements are all on the table.
Spotlight on SEC’s Historical Decisions
In the past, the SEC has shown a tendency to delay decisions when it comes to Bitcoin ETF applications. Just last month, the commission held off on its judgment regarding 21Shares’ spot-Bitcoin application, in collaboration with ARK Investment Management.
Grayscale Investments encountered a setback last year when the SEC turned down its proposal to convert its Bitcoin trust into an ETF. The regulator cited potential market manipulations and fraud as reasons for the refusal.
The Bitcoin space is divided on the idea of a spot-Bitcoin ETF, with those arguing for saying that it would streamline the investment process for mainstream investors and further integrate digital assets with traditional financial systems.
However, the regulator’s apprehensions regarding fraudulent activities continue to loom large. One noteworthy rejection was the SEC’s denial of Gemini’s 2013 Bitcoin ETF application, albeit 10 years ago.
VanEck had its application for a spot Bitcoin ETF rejected in November 2021 at the height of the bull market, just two days before the ruling was set to expire. Then just a month later, Valkyrie Bitcoin Fund and the Kryptoin Bitcoin ETF Trust both had theirs rejected.
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A Rocky Past, Yet a Hopeful Horizon
Historical setbacks had led to a lull until BlackRock Inc. reinvigorated the arena in June with its spot-Bitcoin ETF application. Given BlackRock’s stellar record in launching ETFs, many in the industry believe that this move could be a game-changer.
As the momentum builds, there’s a renewed sense of optimism that the integration of digital assets into traditional financial systems may finally be on the horizon. Only time will tell, but the current climate suggests that the future for Bitcoin ETFs might be brighter than ever before.