SEC Postpones Bitcoin ETF Rulings, Delays Decision for Wisdom Tree

SEC Postpones Bitcoin ETF Rulings, Delays Decision for Wisdom Tree

The post SEC Postpones Bitcoin ETF Rulings, Delays Decision for Wisdom Tree appeared first on Coinpedia Fintech News

The SEC has asked for more time to review Bitcoin ETF applications from Wisdom Tree Funds, Invesco, Galaxy Digital, and Valkyrie Funds. As reported by Reuters,  mentioned in a document that they need until at least October 17 to make a decision about approving or rejecting these applications. 

The SEC usually takes 45 days to respond after a proposal is published, and this delay is a normal part of the process. They didn’t say why it’s delayed this time.

Just two days after a court said the SEC was wrong to reject Grayscale Investments’ request for a bitcoin ETF, the SEC delayed this decision. The court felt the SEC didn’t explain well why it denied Grayscale’s request. Now the SEC has to review it again, but we’re not sure if they’ll change their mind. The SEC might also appeal the court’s decision.

“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” the document read.

Before the Labor Day weekend, the SEC was expected to respond to requests from different companies hoping for a bitcoin spot ETF. They are also set to address similar proposals from BlackRock, Fidelity, Bitwise, and VanEck by the end of this week.

NEW: The @SECGov has delayed a decision on the @WisdomTreeFunds Spot $BTC ETF.

— Eleanor Terrett (@EleanorTerrett) August 31, 2023

The SEC denied WisdomTree’s applications in 2021 and 2022 because they didn’t provide enough protection for investors and the public.

Jeremy Schwartz from WisdomTree is hopeful that the changes they’ve made in their new application will make regulators satisfied. He mentioned that their updated filing includes data sharing agreements, surveillance sharing, and new approaches. The SEC has given similar reasons for rejecting other ETF applications, just like it did for Grayscale’s attempt. 

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