The US SEC has put spot Bitcoin ETF applications from seven major firms under scrutiny, leading to delays and uncertainty. However, former SEC chair Jay Clayton remains confident that approval is on the horizon.
Financial Giants Backing Spot Bitcoin Investments
During a CNBC interview on September 1st, Clayton emphasized a significant shift in the landscape of crypto investments. He pointed out that major financial institutions are now supporting spot Bitcoin investment vehicles, which opens up new opportunities for retail investors. This development has the potential to revolutionize how people gain exposure to cryptocurrencies.
Extended Review Period and Progress Anticipation
On August 31st, the SEC extended the review period for spot BTC ETF applications from seven prominent firms: BlackRock, WisdomTree, VanEck, Invesco Galaxy, Bitwise, Valkyrie, and Fidelity. This decision grants the commission an additional 45 days upon the notice’s publication in the Federal Register to either approve, deny, or further delay these applications.
Clayton expressed his optimism, stating,
“I expect to see progress on this going forward.” He also noted that the SEC has the authority to extend the application deadlines until March 2024.
Inevitable Approval and Echoes of Legal Perspectives
Also, Clayton firmly believes that approval of spot Bitcoin ETFs is “inevitable.” He highlighted the growing disparity between futures products and cash products, suggesting that this divergence cannot persist indefinitely.
Interestingly, Clayton’s argument echoes the sentiments of U.S. Court of Appeals Circuit Judge Neomi Rao. Rao, along with two other judges, recently ordered the SEC to reevaluate asset manager Grayscale’s application to transform its Bitcoin Trust (GBTC) into a spot Bitcoin ETF. Rao pointed out that the SEC had already approved BTC futures ETFs and indicated that Grayscale’s offering was “materially similar.”
Timeline of Delays
The series of delays in ETF applications unfolded rapidly on August 31st, just before the Labor Day holiday weekend in the United States. The upcoming deadline for major spot BTC applications is set for October 7th. At this point, the commission is expected to announce its decision regarding the offering from fund manager Global X.
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