The post SEC Delays Bitcoin Spot ETFs to October 17, 2023, as Predicted by Insiders appeared first on Coinpedia Fintech News
The U.S. Securities and Exchange Commission (SEC) has prolonged the review period for all six pending Bitcoin Spot ETF applications. The regulatory body has set a new decision deadline for October 17, 2023, without offering explicit reasons for the delay.
Insiders had Foreseen the Delay
Market leaders such as BlackRock and Fidelity were reportedly well-prepared for this extension. According to Mike Novogratz, the CEO of Galaxy Digital, individuals “inside BlackRock and Fidelity” were already anticipating these delays.
They understood that the initial deadline was largely a procedural formality. In essence, they were aware that the SEC was inclined to adopt a cautious approach. While Novogratz refrained from providing specifics regarding the approval timeline, he voiced confidence that once the SEC greenlights Bitcoin Spot ETFs, fierce competition for market dominance will ensue.
It’s worth noting that Galaxy Digital, Novogratz’s own digital asset firm, is among those patiently waiting in the ETF queue. In June, they resubmitted their application for a spot in Bitcoin ETF, teaming up with Invesco, the fourth-largest ETF issuer in the United States.
The SEC’s decision to extend the review period occurs against a backdrop of growing criticism for its perceived reluctance toward cryptocurrency-related products. Chris Ferraro, President of Galaxy Digital, suggested that SEC approval could counteract the perception that the regulatory body impedes cryptocurrency innovation.
Grayscale Lawsuit Adds Complexity
In a related development, market analysts point to the ongoing legal dispute between Grayscale and the SEC as a potential factor affecting the approval timeline for Bitcoin Spot ETFs. Grayscale has filed a lawsuit against the SEC after the rejection of its application to transform its Bitcoin Trust into a Spot ETF. If the SEC were to lose this case, experts speculate that it could expedite the approval process for other Bitcoin Spot ETF applications.
In summary, it is evident that the SEC continues to approach cryptocurrency regulation with caution, as indicated by the extended review period. Moreover, industry titans like BlackRock and Fidelity demonstrated a level of foresight regarding these delays, dispelling any notions of naivety. The landscape of the cryptocurrency ETF market remains dynamic, with various factors potentially influencing its trajectory.
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