U.S. Regulator Suspends Approval of Bitcoin ETFs

The US regulator postponed the deadlines by another 45-60 days on the grounds that it needed more time to consider the 19b-4 applications

Last Friday, the SEC again delayed the decision on whether a number of companies seeking approval for a U.S. crypto fund will receive one. Not for the first time, the SEC has delayed the decision period for four applicants by 45 to 60 days, which means that a decision for one of these companies is not expected until November at the earliest.

“The Commission considers that it is appropriate to determine a longer period within which an order to approve or reject the proposed rule change will be issued so that it has sufficient time to consider the proposed rule change and the questions raised in the comments submitted in connection therewith”according to the Commission’s documents.

The SEC now plans to make a decision on the Global X Bitcoin Trust on November 21. The decision on the Valkyrie XBTO Bitcoin Futures Fund is now scheduled for December 8, while WisdomTree will receive a ruling on December 11. The SEC added that a decision on the cryptoin Bitcoin ETF is scheduled to be made on December 24.

VanEck was the first company to file an application for approval of a Bitcoin ETF, followed by a dozen other companies. Currently, the supervisory authority has yet to approve most applicants. The agency is notorious for dragging its feet, and the few who received a decision were rejected.

However, given the current market, many believe that the SEC will soon approve the first Bitcoin ETF. Either of Prediction Bloomberg analysts suggest that approval could come later this month. Analysts pointed to Proshares’ Bitcoin futures ETF, which could receive the first green light.

The approval of an exchange-traded Bitcoin fund will be a major growth marker for the global ETP market, which currently includes $263 billion worth of products. The approval is seen as a turning point, as it will open the market to many conservative individuals who shy away from buying cryptocurrencies directly.

SEC Chairman Gary Gensler has faced some criticism from the crypto community after recently saying crypto is not a practical form of private money while comparing stablecoins to casino poker chips. Gensler has been widely negative about supporting crypto products in the current environment, but has strangely not taken the same view for Bitcoin futures. He has claimed in the past that Bitcoin ETFs would be more welcome if they were based on Bitcoin futures rather than the asset itself.

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