SEC delays on approving applications for spot Bitcoin ETF

The US Securities and Exchange Commission has decided to further the timeframe for coming to any conclusion regarding the applications it has received from Invesco, Wisdom Tree, and Valkyrie. The matter is related to spot bitcoin trading exchange trading funds. 

The decision has been extended for a couple of weeks, somewhere around the middle of October 2023, and the chances are it could be further delayed. Initially, the decision was meant to come through in the forthcoming week. 

The plan for the extension took place following the federal appeals court order that the SEC should not have refused an application forwarded by Grayscale Investments for building a spot Bitcoin ETF. In the opinion of a three-member judge panel of the District of Columbia Court of Appeals in Washington, they strongly felt that the regulatory body’s explanation for the refusal was highly insufficient. 

This order signifies that the SEC has to rethink the application of Grayscale. This, however, does not ensure the fact that there will be a change in the SEC’s decision. In the meantime, the SEC will be closely looking into the ruling and may go in for an appeal.

In recent times, the SEC has refused multiple applications with regard to spot Bitcoin ETFs, publicly traded investment machines that are able to keep track of Bitcoin pricing. The reason forwarded for this is the inadequacy of trade monitoring, which would open the doors for malpractices. Earlier, BlackRock, which is the largest asset manager globally, took the initiative of filing for a spot Bitcoin ETF, which raised the hopes of many.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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