The disquiet within the financial industry was palpable when the U.S. Securities and Exchange Commission (SEC) announced a pause on the decisions regarding Bitcoin ETF applications submitted by a myriad of firms, including giants like Fidelity, WisdomTree, Valkyrie, VanEck, Bitwise, and Invesco. The SEC claimed it requires another 45 days – at the very least – to further probe these applications, stretching the suspense until mid-October.
This habitual tendency of the SEC to postpone its verdict within 45 days of listing a proposal is viewed by many as a standard procedure, and yet others perceive it as a stone on the path to progress. Among the six hopeful Bitcoin ETF applicants, total consideration time is estimated to be 240 days. The SEC’s uninformative explanation behind the deferment simply stated it requires additional duration for a comprehensive examination.
The Wall Street watch-dog is also prepping to respond to Blackrock’s application by the week’s end. Let’s not forget their past act when they deferred their call on a Bitcoin ETF from Ark 21Shares in August, igniting industry analysts to prophesy Bitcoin ETF authorizations could materialize by 2023 or even as late as 2024. The prediction rose from 65% to 75% post-Grayscale Investments’ victory against the SEC in court.
However, what diversifies viewpoints starkly is SEC Chair Gary Gensler’s rather aggressive stance on cryptos, which is expected to be tested in his testimonies before Congress in September. Back in April, he had stirred the pot by insisting crypto firms should register with the SEC, despite the non-existence of a suitable registration framework.
In the labyrinth of this ongoing regulatory ambiguity, the SEC’s failure to green-light any Bitcoin ETFs yet is seen as part of its controlled approach. This calculated slowing down, critics claim, is indicative of the cautious steering of the SEC towards the turbulent waters of the emerging crypto market.
As the countdown begins for the SEC’s 240-day examination of these ETF applications, it’s clear that the upcoming months will be pivotal for the future of Bitcoin ETFs. Indubitably, with volatility at play and a certain amount of reservations already entrenched in the financial sector, the path to success will be fraught with alternating periods of anticipated breakthroughs and inevitable slow-downs. But for now, only time will tell the impact of these SEC moves on the crypto future.
Source: Cryptonews
