In a surprising development, the U.S. Securities and Exchange Commission (SEC) has changed its position on cryptocurrency Exchange Traded Fund (ETF) applications, creating a wave of doubt among the crypto community. Initially, the SEC responded quickly to ARK Invest 21Shares’ application for a spot Bitcoin ETF, but it has now imposed delays on submissions from BlackRock and Bitwise. This unforeseen delay has raised concerns about whether we will see approval for a spot Bitcoin ETF before 2023.
BlackRock, a significant player in the investment management industry, had raised hopes from both the cryptocurrency community and financial experts. Due to their strong presence in multiple sectors within and beyond the U.S., it was widely believed that their application for an ETF would be quickly granted. However, with the recent announcement of a delay by the SEC on BlackRock’s filing, it has become clear that regulatory procedures may not prioritize fast approvals. Only three of the seven filed documents have thus far received feedback from the US SEC.
The SEC’s latest announcement declared their intent to evaluate and consider the approval or disapproval of a proposed rule change for listing and trading shares of the iShares Bitcoin Trust. This decision demonstrates the SEC’s careful and thorough analysis of these ETF proposals.
This deferral follows our previous announcement regarding the deferment of the ARK 21Shares Bitcoin ETF submission. The SEC has requested more opportunities to inspect and deliberate the proposed regulation alteration, shifting the timeline. The initial end date for ARK’s response was November 11, 2023. Exacerbating matters further, Franklin Templeton, a celebrated financial asset management firm, has also applied for a listed ETF recently.
On September 30, 2023, Valkyrie is ready to offer investors a Bitcoin and Ether Strategy ETF, which will be a milestone since it is the first ETH futures product to become available in the USA. This unveiling is expected to create fresh chances for those looking to broaden their cryptocurrency investments.
According to Eric Balchunas, an analyst for Bloomberg, the Exchange-Traded Fund (ETF) sector is an incredibly competitive field. Balchunas reported that other companies are racing against the clock to deploy futures-based ETFs, but the implementation of their plans is dependent on gaining approval from the U.S. Securities and Exchange Commission within an acceptable period. Nevertheless, the potential for a government shutdown on October 1 has made their task far more urgent.
In conclusion, the Security and Exchange Commission’s (SEC) current hold-up of illustrated ETF proposals from BlackRock and Bitwise has generated uncertainty in the cryptocurrency space. Numerous crypto enthusiasts and financial experts had high hopes for prompt approval, but the regulatory process appears to be taking longer than anticipated. People are eagerly awaiting the launch of Valkyrie’s Bitcoin and Ether Strategy Exchange-Traded Fund (ETF), expecting that this remarkable move will accelerate crypto-investing’s growth and development. Eventually, the fate of those ETFs will hold in the balance of the SEC and their upcoming verdicts, resolving either to ignite or dampen trust in the crypto-market.
