When to expect the final verdict on bitcoin ETFs
Date: 2023-07-30 Author: Karina Ziganova Categories: BLOCKCHAIN, IN WORLD
The hype around the potential launch of a spot bitcoin ETF has reached a new level after the American investment giant BlackRock announced its intention to launch the iShares Bitcoin Trust. The largest asset manager filed an application for a bitcoin ETF with the US Securities and Exchange Commission (SEC) in mid-June 2023. However, the regulator almost immediately "rejected" it, noting that the document does not meet the requirements for comprehensiveness.
In early July, BlackRock again applied for a bitcoin ETF. Coinbase (BlackRock's partner on bitcoin ETFs) expects that, taking into account all possible transfers, the SEC will announce the final verdict by March 15, 2024.
The SEC verdict is expected by a number of companies
Investment firm WisdomTree already tried to get approval for a bitcoin ETF in 2021, but then the SEC refused. WisdomTree decided to reapply for the exchange-traded product in mid-June 2023. From this it follows that the deadline for consideration of the firm's application is set for February 2024.
In the same time window, investment firms Galaxy Digital and Invesco applied for a spot bitcoin ETF. The deadline for their consideration is also set for the first quarter of 2024.
In June 2023, Valkyrie Investments submitted an application for a bitcoin ETF to the SEC. Prior to this, the company had already tried to get approval for a spot ETF, but to no avail. The verdict on the application, as in the above-mentioned cases, is expected in early 2024.
Cathie Wood's hedge fund ARK Invest is also seeking approval for a spot bitcoin ETF. The firm has already been rejected in early 2022. Later, the fund filed a new application, but the exchange regulator rejected it. In June 2023, ARK Invest made a new attempt together with 21Shares, but the denouement is unlikely to happen until 2024.
One of the oldest players in the market, VanEck, decided to try its luck for the fourth time. Since 2018, the company has been desperately trying to enlist support from the SEC on the issue of a spot cryptocurrency ETF.
At the end of June 2023, the American giant Fidelity joined the considerable list of applications for bitcoin ETFs. Prior to that, he had repeatedly received a refusal from the US exchange regulator in this area. The deadline for his application is expected in January 2024.
Bloomberg analysts believe that it is not worth waiting for an early resolution of the situation around the spot bitcoin ETF. This is hinted at by the SEC's refusals on other exchange-traded funds, which in their legal structure are close to new applications for a cryptocurrency product.
