The United States Securities and Exchange Commission (SEC) has delayed its decision to either approve or deny the request from WisdomTree to launch a spot Bitcoin ETF product in the country. The delay comes on the heels of growing clamor for such a product which has notably intensified this week after Grayscale Investments won its suit against the market regulator.
Multiple Bitcoin ETFs Delayed
According to a screenshot shared by Fox Business journalist and producer Eleanor Terrett, the SEC has a document announcing a “longer period of commission action on the proposed rule change” for WisdomTree Bitcoin Trust. In addition to this, other investment asset management firms including Invesco, Valkyrie and Galaxy have also had their ETF decisions bordering on either approval or rejection postponed by the regulator.
NEW: The @SECGov has delayed a decision on the @WisdomTreeFunds Spot $BTC ETF.
— Eleanor Terrett (@EleanorTerrett) August 31, 2023
This delay is not suggestive of whether or not the markets regulator will approve or deny the WisdomTree request that was first filed on December 8, 2021. After much turmoil that trailed related products, the investment manager refiled the application on June 19, 2023, joining the likes of BlackRock, Fidelity Investments, and Bitwise who are also in the race to float a related product.
WisdomTree was keen on gaining exposure to Bitcoin with its proposed ETF while maintaining low expenses.
At the time of the filing, the firm announced plans to leverage an independent pricing source in valuing its BTC. Based on the 45th-day time period reserved for the regulator to make a decision, September 4th, 2023 is supposed to be the stipulated time. However, the SEC is pushing to extend this 45th-day time period.
Bitwise Exec Urges SEC to Approve Bitcoin ETFs Together
Noteworthy, Bitwise’s chief investment officer, Matt Hougan, recently urged the U.S. SEC to approve all pending Bitcoin ETFs including that of WisdomTree.
Hougan believed that concurrent ETF approvals will significantly profit investors as it would be in their best interest but at the same time, he was not ignorant of the unpredictability of the regulator which could still amount to rejection at the end of the day.
His advice came right when the entire crypto industry was anticipating a favourable decision from the regulator seeing that it had neared the crucial decision week.
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