7 companies' applications delayed again by the SEC, hopes for Bitcoin ETF approval this year are slim

Author: BlockBeats

Table of Contents

· Bitcoin ETF applications delayed again
· Ripple and Grayscale's victories brought hope
· Wall Street giants actively applying for Bitcoin ETFs since June

7 Companies' Bitcoin ETF Applications Delayed Again

On September 30, the SEC delayed its decision on VanEck's spot Bitcoin ETF application. On the same day, Bloomberg analyst James Seyffart posted on social media that the SEC had also postponed decisions on two spot Bitcoin ETFs from Fidelity and WisdomTree.

Recently, the SEC has delayed decisions on Bitcoin spot ETF applications from 7 companies.

BlockBeats previously reported on September 1 that the SEC announced on Thursday it would delay approval decisions on seven spot Bitcoin ETF proposals. In a separate document, the regulator stated that the decision deadlines for BlackRock's iShares Bitcoin Trust, Fidelity's Wise Origin Bitcoin Trust, VanEck Bitcoin Trust, WisdomTree Bitcoin Trust, and Invesco Galaxy Bitcoin ETF would be extended to October 17, while the deadline for Valkyrie's Bitcoin fund would be postponed to October 19. Additionally, the decision deadline for Bitwise Bitcoin ETP Trust has also been delayed to October 16.

On September 29, the SEC reiterated that it is initiating additional procedures to determine whether the Bitcoin spot ETF applications from BlackRock, Invesco, Valkyrie, and Bitwise should be approved. In documents submitted to Valkyrie, the SEC requested comments from the public and sought to understand whether the proposed monitoring sharing agreement with cryptocurrency exchange Coinbase would help "detect, investigate, and prevent fraud and manipulation." This indicates that the approval process will take at least a few more months.

Grayscale and Ripple's Victories Brought Hope

On July 13, 2023, Ripple Labs achieved victory in its three-year lawsuit against the SEC, with Judge Analisa Torres ruling favorably for Ripple Labs: determining that XRP is not a security.

Related Reading: Does the court ruling in the three-year-long Ripple case have epoch-making significance?
After all, XRP is one of the more centralized foundations, with key leaders, standard sales through trading platforms, and a formal distribution plan. If XRP is not a security, then almost everything sold through trading platforms is not a security.
If XRP is not a security, it is clear that BTC and ETH are also not securities. This seems to imply that the Bitcoin ETF applications submitted by Wall Street giants like BlackRock may have a chance of success.

BlockBeats previously reported on August 29 that Grayscale won its lawsuit against the SEC. A three-judge appellate panel in Washington overturned the SEC's decision to block Grayscale's ETF. The court stated, "The rejection of Grayscale's proposal was arbitrary and capricious, as the SEC failed to explain the different treatment of similar products."

The community generally believes that the news of Grayscale's victory will increase the likelihood of the SEC approving spot Bitcoin ETFs.

Related Reading: Grayscale wins lawsuit against SEC, does the DCG empire behind GBTC see new hope?
Issues such as market manipulation, liquidity, and the inherent volatility of crypto industry assets are among the reasons why regulatory bodies like the SEC have remained cautious.
Clearly, if a spot Bitcoin ETF is officially listed in the U.S., it will become a milestone event in the global blockchain field, as it means that U.S. regulators legally recognize Bitcoin's status as a financial product, granting Bitcoin unprecedented influence.

Wall Street Giants Actively Applying for Bitcoin ETFs Since June

BlockBeats reported on June 16 that asset management giant BlackRock's subsidiary iShares submitted a filing for a spot Bitcoin ETF to the SEC, named "iShares Bitcoin Trust," with assets "primarily consisting of Bitcoin held by the trust's custodian."

On June 21, Bloomberg senior ETF analyst Eric Balchunas stated that asset management company WisdomTree has submitted a spot Bitcoin ETF application again. Additionally, Invesco refiled its 19b-4 document for a spot Bitcoin ETF. On the same day, cryptocurrency fund company Valkyrie also submitted an S-1 registration form for a spot Bitcoin ETF to the SEC.

On June 30, according to reports from CNBC citing relevant documents, financial services giant Fidelity has submitted a spot Bitcoin ETF application again. Fidelity stated in its application that its Wise Bitcoin Trust (a spot Bitcoin ETF) would help U.S. investors mitigate risks.

At that time, the SEC responded that these spot Bitcoin ETF application documents did not clearly name the spot Bitcoin trading platforms with which they had signed "data sharing agreements," nor did they provide sufficient information about these monitoring arrangements.

On July 4, BlackRock resubmitted its spot Bitcoin ETF application to the SEC through Nasdaq, indicating that Coinbase Global Inc. would provide market oversight. On July 5, Valkyrie also submitted a new 19b-4 document, which included updates designating Coinbase as a partner for the monitoring sharing agreement.

On August 4, Bloomberg ETF analyst James Seyffart stated on social media that Bitwise actually applied for two ETFs, in addition to the previously announced "Bitwise Bitcoin and Ether Equal Weight Strategy ETF," there is also a "Bitwise Bitcoin and Ether Market Cap Weight Strategy ETF."

Despite repeated delays, enthusiasm for spot Bitcoin ETF applications has remained strong. On August 30, Bloomberg senior ETF analyst Eric Balchunas stated, "My colleague James Seyffart and I have raised the probability of a Bitcoin spot trading platform ETF launching this year to 75% (increasing to 95% by the end of 2024)."

After the SEC indicated it would delay the Bitcoin ETF applications from BlackRock and others, on October 5, former BlackRock managing director and current CEO of MarketVector Indexes Steven Schoenfield stated at the CCData Digital Assets Summit in London: "I believe the SEC may approve all ETF applications simultaneously; they do not want to give anyone a first-mover advantage. They have not completely rejected any of the applications on the list, but are seeking comments, which is a small but significant step forward."