SEC Extends ETF Review To 2024
The United States Securities and Exchange Commission (SEC) has filed for an extension to properly review applications for Spot Bitcoin and Ethereum Futures ETFs. The SEC revealed on November 15 that it needed more time to thoroughly consider the proposed rule change and issues raised in the applications. As a result, the decision on these ETFs has been postponed until 2024.
The delay by the regulatory commission is impacting multiple ETF applications, including Grayscale’s Ethereum Futures ETF and HashDex’s application to convert its Bitcoin Futures ETF into a spot fund. Despite the growing demand and positive sentiment surrounding Bitcoin and Ethereum ETFs potentially entering the crypto market, the SEC is hindering their growth by delaying approvals. The regulator cited risks such as market manipulation, fraud, and investor risks as reasons for the rejections.
Senior Analyst at Bloomberg, James Seyffart, has stated that there are high probabilities of more delays on BTC and Ether ETFs by the US SEC. He predicts that a 19b-4 approval on Spot Bitcoin ETFs would be processed by January 10, 2024.
The SEC’s decision to extend the review has resulted in uncertainty in the market. While the news of the delays has caused concern among investors, the price of Bitcoin has been rallying. Despite the postponement, Bitcoin has defied the SEC delays and has surged above $37,000. The price of BTC has shown weekly gains of 4.35%, reaching $37,112.68 and its market cap for the day is up by 2.25%. This unexpected price increase has reinstated optimism among BTC investors and the broader crypto community as they eagerly await further updates on the SEC’s decision on Spot Bitcoin ETFs.
The next deadline dates for the Hashdex and Franklin Spot Bitcoin applications are January 1, 2024. In total, 10 out of the 12 pending Spot BTC ETF applications have their deadlines set for January 2024, but the SEC can still postpone them as far as March 2024. By May 2024, the regulator will have made decisions on all the Spot BTC ETF filings. Despite the delays and uncertainty, the crypto community remains optimistic about the future of Bitcoin and Ethereum ETFs.
