BlackRock and Bitwise face delay in SEC decision on Spot Bitcoin ETF

The US Securities and Exchange Commission (SEC) has once again delayed its decision on approving or disapproving the spot Bitcoin exchange-traded fund (ETF) applications filed by asset management giant BlackRock and cryptocurrency investment firm Bitwise.

The SEC has been long scrutinizing the possibility of granting approval to a Bitcoin ETF, a product that would make exposure to the world’s largest cryptocurrency more accessible to retail investors. However, despite growing interest, the regulator has consistently held back from giving a green light.

BlackRock, the world’s largest asset manager, filed an application for its Bitcoin ETF back in January, seeking approval to trade Bitcoin futures on the Chicago Mercantile Exchange. If approved, it would provide investors with exposure to Bitcoin without the need to directly own or custody the digital asset.

Similarly, Bitwise submitted its application in February for a Bitcoin ETF that tracks the performance of Bitcoin through physically settled futures contracts. The company has been actively involved in educating regulators about the benefits of Bitcoin ETFs and believes that the market is now mature enough for such a product.

Both BlackRock and Bitwise had hoped to receive a decision from the SEC by mid-June, but it seems that the regulators need more time to review the applications and address any concerns they might have.

The delay in reaching a decision has sparked frustration among the crypto community, who have been eagerly waiting for a Bitcoin ETF to be approved. Proponents argue that a Bitcoin ETF would not only make investing in Bitcoin easier, but it would also bring more credibility and institutional support to the cryptocurrency market. It would provide a regulated and secure way for investors to gain exposure to Bitcoin, potentially leading to increased adoption and liquidity in the market.

However, the SEC has remained cautious when it comes to Bitcoin ETFs, citing concerns over market manipulation, potential fraud, and the lack of robust market surveillance. The regulator has repeatedly emphasized the importance of establishing proper safeguards and investor protections before allowing such products to be launched.

It is worth noting that the SEC has a history of delaying decisions on Bitcoin ETF applications. Over the years, it has postponed several rulings while seeking additional information and public feedback. Despite the delays, many in the industry remain optimistic that a Bitcoin ETF will eventually be approved, given the growing mainstream acceptance and regulatory progress in the crypto space.

In the meantime, investors will have to wait patiently for the SEC’s decision. The delay does not necessarily mean a rejection, but it does highlight the complexity and cautious approach the regulator has taken towards Bitcoin ETFs. As the cryptocurrency market continues to evolve and mature, the hope is that the SEC will find suitable solutions to address its concerns and provide retail investors with a trusted and secure way to invest in Bitcoin.

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