– The United States Securities and Exchange Commission (SEC) is facing its first deadlines to decide on seven new Bitcoin (BTC) spot exchange-traded fund applications.
– Bitwise will find out if its ETF will win SEC approval on Sept. 1, while BlackRock, VanEck, Fidelity, Invesco, and Wisdomtree will await the SEC’s decision for their funds by Sept. 2. Valkyrie will hear back from the SEC on Sept. 4.
– The U.S. Court of Appeals ruled on Aug. 29 that the SEC’s rejection of Grayscale’s application to convert its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF was “arbitrary and capricious”.
– Bloomberg ETF analyst James Seyffart explained that Grayscale’s win increases the odds of a successful outcome for the next wave of applicants.
– The SEC can delay its decisions and has two more proposed deadlines for each fund before being forced to make a final decision on the 240th day post-filing.
– The final deadlines for the SEC regarding the awaiting applicants are all mid-March next year.
What are the SEC’s options post-Grayscale decision?
– After the Aug. 29 ruling in favor of Grayscale, the SEC has 90 days to file an appeal with the U.S. Supreme Court or apply for an en banc review.
– The SEC hasn’t clarified its next move yet.
– If the SEC doesn’t appeal, the court will specify how its ruling is executed, which could include instructing the SEC to approve Grayscale’s application.
– Bloomberg ETF analyst Eric Balchunas considers the odds of the SEC revoking the Bitcoin futures ETFs as “highly unlikely” due to the SEC’s reported openness to Ethereum futures ETFs.