The impending response of the U.S. Securities and Exchange Commission (SEC) to significant Bitcoin ETF applications from BlackRock, VanEck, Invesco, Bitwise, and WisdomTree marks a defining moment in the future of cryptocurrency integration with conventional financial markets. These applications may see either approval, rejection, or a further delay by the SEC, suggesting notable implications ahead.
The SEC’s historical decision-making record exhibits a tendency to delay verdicts related to the crypto industry. For instance, in August, the commission postponed a decision on a collaborative spot-Bitcoin application by 21Shares and ARK Investment Management. The SEC rejected an attempt by Grayscale Investments to convert its Bitcoin trust into an ETF last year, alleging potential market manipulation and fraud. Since Grayscale filing a lawsuit contesting the inconsistency and discriminatory nature of this decision, the sector’s future lies in the precarious balance.
Financial experts have expressed modest optimism about immediate approvals, considering the SEC’s habit to delay rulings. For instance, Roxanna Islam from VettaFi believes it wouldn’t be surprising to see further postponement by the SEC. She suggested that an Ether-futures ETF might get the green light even before spot-Bitcoin ETF filings due to the pending decision on Grayscale’s lawsuit.
Despite persisting worries about possible deception and irregularities, the crypto community strongly supports the idea of a spot-Bitcoin ETF. Enthusiasts argue it would simplify investment processes for average investors and bring digital assets closer to traditional financial systems. However, past applications including one from Gemini in 2013, submitted by the Winklevoss twins were rejected, setting a precedent for the string of denials that followed.
Interestingly, June saw BlackRock Inc. heightening the competition for a spot-Bitcoin ETF with its application. Given its history of successfully launching ETFs, analysts believe that application like BlackRock’s could have an increased chance of being accepted.
Growing enthusiasm for a potential fund has motivated several companies to explore complex financial products including Bitcoin ETFs, combined Bitcoin-and-Ether-futures funds and Ether-futures. There are speculations about the SEC potentially authorising commencement of Ether-futures trading in October, marking a milestone moment for the industry.
The upcoming Labor Day weekend holds the crypto community in high anticipation as industry giants await the SEC’s pivotal decisions regarding Bitcoin ETF applications. Even though immediate approvals seem unlikely bearing in mind the regulator’s previous behaviour, the forthcoming rulings could provide key insights into the SEC’s progressive take on digital assets.
Source: Cryptonews
