Excitement within the cryptocurrency community suffered a dent when the US Securities and Exchange Commission (SEC) decided to postpone their decision on a sought-after Bitcoin exchange-traded fund (ETF), a major setback for those backing Ark Invest’s spot Bitcoin ETF application. Now, our focus shifts to the application by the Bitwise Bitcoin ETP Trust set for review by September 1. On this date, ETF applications from BlackRock, VanEck, WisdomTree, and Invesco follow in due course and naturally, skeptics and enthusiasts alike are anticipating the outcomes.
Historically, Bitcoin ETFs backed solely by futures contracts have been approved by the SEC, seemingly favoring the futures market citing stronger oversight compared to the spot Bitcoin market. Will the tide change soon? With BlackRock’s solid track record of ETF application approval, it’s not far-fetched for enthusiasts to be hoping, albeit cautiously, that a Bitcoin spot ETF will gain the green light, finally.
However, industry experts seem to prognosticate a further delay in the upcoming ETF applications following the Ark Invest incidence. According to a Bloomberg Intelligence analyst, the general anticipation leans towards additional delays. Even a favorable outcome from Grayscale’s lawsuit, which sought to convert its Bitcoin trust fund into a spot ETF, would likely not change the predicted timeline for major decisions.
The SEC’s decision making process includes an initial 45-day review period, which can be extended twice, adding about 150 days to the process. Consensus among observers is that the SEC will likely fully utilize this time frame before making a decision in September.
While supporters of cryptocurrency remain hopeful, it would be naïve not to acknowledge the SEC’s regressive stance over the years, delaying decisions to the fullest extent within their powers. As Stephane Ouellette, CEO of institutional crypto platform FRNT Financial, rightly notes, even if these products were ultimately to be approved, it would be nothing short of surprising if they were approved at the earliest possible instance.
As we look forward to September, the unfolding of these applications will certainly be pivotal in shaping the future of cryptocurrency regulation. While delays seem probable, one can’t help but wonder if the tide could be changing, leading to a potential breakthrough for Bitcoin ETFs. Will the regulators stick to their predictable move, or will there be a disruptive surprise? Time certainly will tell.
Source: Cryptonews
