The US(SEC) stated that they would need some additional time to consider the proposed rule modification for the spot Bitcoin ETF application.
The SEC has postponed all seven spot Bitcoin ETF applications from BlackRock, Invesco, WisdomTree, and others. As the SEC struggles with Grayscale’s triumph earlier this year, the development occurs as expected.
According to records uploaded on the SEC’s website on Thursday, August 31, the federal securities regulator filed seven petitions differently. SEC Chair Gary Gensler has regularly defended rejecting ETF proposals to protect investors from fraud in an industry he views as vulnerable. In documents released Thursday, the US SEC stated:
“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein”.
The decision comes after Grayscale Investments’ substantial victory over the SEC. Earlier this week, a federal appeals court overruled the decision to deny Grayscale’s request to convert GBTC into an ETF. The court found the refusal “arbitrary and capricious” because the commission had not justified its different handling of comparable products. ETFs based on Bitcoin futures were approved in 2021.
Soon, The Wait For The Spot Bitcoin ETF Will End
Cryptocurrency supporters have long argued that the introduction of a spot fund will benefit investors. The introduction of such a product would simplify institutional crypto market participation.
After the Grayscale court verdict earlier this year, Bloomberg analysts stated spot Bitcoin ETFs are 75% more likely to launch by 2023. They’re also confident the US will have a product by 2024.
A number of Bitcoin supporters have expressed a great deal of enthusiasm for the prospect of a spot Bitcoin product. These funds, in their opinion, have the potential to generate significant profits—possibly even tens of billions of dollars.