SEC Delays Bitcoin ETF Decisions, Price of Bitcoin Drops
In Brief
The SEC has declared a delay in making decisions about seven spot Bitcoin ETFs, which notably include proposals from major financial companies like BlackRock and Fidelity.
The SEC explained that this postponement was essential for them to thoroughly evaluate the proposed regulatory changes and the various issues they involve.
This announcement led to a noticeable 5.1% drop in the value of Bitcoin in just one day.
The SEC has stated a delay in concluding decisions on seven proposals for spot Bitcoin ETFs, particularly those from notable financial institutions. BlackRock and Fidelity .
The postponement was prompted by a sudden surge in ETF applications, which will extend the decision timelines for these funds.
Deadlines for decisions regarding BlackRock’s iShares Bitcoin Trust, Fidelity’s Wise Origin Bitcoin Trust, VanEck Bitcoin Trust, WisdomTree Bitcoin Trust, and Invesco Galaxy Bitcoin ETF have been extended to October 17. Furthermore, the decision date for the Bitwise Bitcoin ETP Trust has been moved to October 16, while the Valkyrie Bitcoin Fund's deadline is now set for October 19.
The SEC has provided reasoning for this delay, underscoring the necessity of allowing ample time for an exhaustive review of the proposed regulations and the relevant questions they entail.
Importantly, the SEC has yet to approve any spot Bitcoin ETFs due to concerns regarding potential fraud and market manipulation. It's noteworthy that in 2021, the SEC did approve the trading of the first Bitcoin futures ETF.
Following the SEC's announcement to delay decision making, Bitcoin’s price dropped by 5.1% within a day. As of the latest figures, Bitcoin was trading around $26,009. CoinGecko .
Earlier this week, Bitcoin peaked at $27,497, boosted by a significant legal win for the cryptocurrency sector. On August 29, the U.S. District of Columbia Court of Appeals issued a ruling in an ongoing lawsuit against the SEC regarding a spot Bitcoin fund. While this ruling does not guarantee immediate approval for a Bitcoin ETF, it does compel the SEC to reassess Grayscale’s ETF proposal. ruled in favor of Grayscale Investments The U.S. Federal Appeals Court made a landmark ruling indicating that the SEC wrongfully rejected the Bitcoin ETF proposal.
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In line with the Trust Project guidelines With a Master’s degree in Public Communications and currently pursuing another major in International Business Management, Valeria also spends her leisure time exploring photography and fashion styling. Her journey in journalism began at the tender age of 13 when she created her first fashion blog, igniting her passion for writing and style.
