Although
the cryptocurrency market has significantly developed over the past few years,
the Securities and Exchange Commission (SEC) still uses the same tactics it
employed almost five years ago. The institution has once again postponed its
decision on approving spot Bitcoin exchange-traded funds (ETFs). Even the
recent court ruling challenging its position has not changed the institution’s
stance.
Initially
scheduled for next week, the new decision dates for applications from Invesco,
WisdomTree, and Valkyrie have been extended to mid-October. This development
comes close to a federal appeals court ruling, which ordered the SEC to
reconsider an application from Grayscale Investments for a similar product.
Two days before
the SEC’s announcement, a federal appeals court ruled that the agency was
incorrect in denying Grayscale Investments the opportunity to establish a spot
Bitcoin ETF. The District of Columbia Court of Appeals has now mandated the SEC
to reevaluate Grayscale’s application. While the regulatory body reviews the
court’s decision, there’s no guarantee that its final judgment will favor
Grayscale.
JUST IN: SEC is opting to delay (as expected) on spot bitcoin ETF deadlines pic.twitter.com/W4JjOji6L2
— Eric Balchunas (@EricBalchunas) August 31, 2023
In recent
years, the SEC has dismissed numerous applications for spot Bitcoin ETFs. The
regulatory body cites insufficient trading surveillance, which they argue could
expose the underlying Bitcoin market to fraudulent activities and manipulation.
This stance has remained consistent despite increased interest from major
players in the financial sector.
The price
of Bitcoin declined as it reacted to the latest news. During yesterday’s
(Thursday) session, BTC lost over 5% and fell below the local support level of
$26,000.
Source: Yahoo Finance
A Ripple Effect on the
Industry
In a
related development, BlackRock, the world’s largest asset manager, submitted
its application for a spot Bitcoin ETF in June. This move was perceived by many
as a potential turning point for the cryptocurrency industry and even led to a
surge in Bitcoin prices. However, the market remains uncertain given the SEC’s
history and recent delay.
BlackRock’s
application set off a domino effect in the market, prompting many other
companies to submit their proposals. The current situation closely resembles
that of 2018 and 2019, when the market was flooded with the first wave of applications
for spot Bitcoin ETFs. At that time, the SEC also dragged out the decision,
ultimately rejecting the companies’ applications.
According
to experts, the SEC will eventually have to relent and allow these types of
instruments to trade on the American market. However, it is currently engaged
in open warfare with cryptocurrency companies, bringing lawsuits against firms, such as Binance and Coinbase.
Although
the cryptocurrency market has significantly developed over the past few years,
the Securities and Exchange Commission (SEC) still uses the same tactics it
employed almost five years ago. The institution has once again postponed its
decision on approving spot Bitcoin exchange-traded funds (ETFs). Even the
recent court ruling challenging its position has not changed the institution’s
stance.
Initially
scheduled for next week, the new decision dates for applications from Invesco,
WisdomTree, and Valkyrie have been extended to mid-October. This development
comes close to a federal appeals court ruling, which ordered the SEC to
reconsider an application from Grayscale Investments for a similar product.
Two days before
the SEC’s announcement, a federal appeals court ruled that the agency was
incorrect in denying Grayscale Investments the opportunity to establish a spot
Bitcoin ETF. The District of Columbia Court of Appeals has now mandated the SEC
to reevaluate Grayscale’s application. While the regulatory body reviews the
court’s decision, there’s no guarantee that its final judgment will favor
Grayscale.
JUST IN: SEC is opting to delay (as expected) on spot bitcoin ETF deadlines pic.twitter.com/W4JjOji6L2
— Eric Balchunas (@EricBalchunas) August 31, 2023
In recent
years, the SEC has dismissed numerous applications for spot Bitcoin ETFs. The
regulatory body cites insufficient trading surveillance, which they argue could
expose the underlying Bitcoin market to fraudulent activities and manipulation.
This stance has remained consistent despite increased interest from major
players in the financial sector.
The price
of Bitcoin declined as it reacted to the latest news. During yesterday’s
(Thursday) session, BTC lost over 5% and fell below the local support level of
$26,000.
Source: Yahoo Finance
A Ripple Effect on the
Industry
In a
related development, BlackRock, the world’s largest asset manager, submitted
its application for a spot Bitcoin ETF in June. This move was perceived by many
as a potential turning point for the cryptocurrency industry and even led to a
surge in Bitcoin prices. However, the market remains uncertain given the SEC’s
history and recent delay.
BlackRock’s
application set off a domino effect in the market, prompting many other
companies to submit their proposals. The current situation closely resembles
that of 2018 and 2019, when the market was flooded with the first wave of applications
for spot Bitcoin ETFs. At that time, the SEC also dragged out the decision,
ultimately rejecting the companies’ applications.
According
to experts, the SEC will eventually have to relent and allow these types of
instruments to trade on the American market. However, it is currently engaged
in open warfare with cryptocurrency companies, bringing lawsuits against firms, such as Binance and Coinbase.
