US SEC delays decision on Blackrock’s spot Bitcoin ETF application
- SEC has postponed the decision-making on the approval of Blackrock’s spot Bitcoin ETF application
- The next update on the application will follow in October 2023
The United States Securities and Exchanges Commission (SEC) has delayed making a decision on Blackrock’s spot Bitcoin Exchange Traded Fund (ETF) application. The company is the latest in the line of delays announced on 31 August. And, with this move, Blackrock would now have to wait till October 2023 for the SEC to reach a decision.
The investment management giant applied for a spot Bitcoin ETF on 15 June. Furthermore, Coinbase was onboarded to the plan as its custodian. The company was among the first ones to apply for a spot Bitcoin ETF this year, followed by other firms. Moreover, the firm’s CEO – Larry Fink – claimed that a spot Bitcoin ETF would “democratize” crypto.
Notably, the Securities Commission announced that it has delayed making a verdict on all other applications. This includes Fidelity Wise Origin Bitcoin Trust, Invesco Galaxy Bitcoin ETF, Valkyrie Bitcoin fund, VanEck Bitcoin Trust, and WisdomTree Bitcoin Trust.
Speaking about the SEC’s decision on the spot Bitcoin ETF with Bloomberg, Bitwise CEO – Matt Hougan – stated that the SEC was correct in denying the ETF 10 years ago. However, the situation has changed in today’s market with infrastructure in place, Hougan argued. He said,
“The industry wasn’t ready. The institutions weren’t ready. The infrastructure wasn’t ready. But I think today it is and it is time for us to move forward”
Trouble looms SEC Chair Gary Gensler?
Notably, the SEC has made a delay in its decision even though there have been significant criticisms against the commission’s chairman – Gary Gensler. Furthermore, the SEC, under his leadership, has seen two significant losses against the crypto firms. The first was the partial win of Ripple, a prominent crypto firm that was sued by the commission for the distribution of XRP.
The second was Grayscale Investment’s lawsuit against the commission for rejecting its application to convert GBTC into a spot Bitcoin ETF. Additionally, the commission rejected it by citing drawbacks in its anti-fraud requirements and investor protection standards. However, the DC Circuit Court took down this decision on 29th August, asking the commission to review its decision.
This second loss had the U.S. Senator – Davidson Resparks – calling for the firing of Gary Gensler. The Senator had remarked that this was “more evidence that Gary Gensler’s actions at the SEC are arbitrary and capricious.”