Bitcoin spot ETF proposals are likely heading toward a mid-October showdown as the Securities and Exchange Commission [SEC] has announced the postponement of decisions on seven such applications. While Bitwise Bitcoin ETP Trust faces a decision deadline extension until October 16, BlackRock, Fidelity, VanEck, WisdomTree, and Invesco Galaxy Bitcoin ETFs are granted an extended deadline until October 17. The Valkyrie Bitcoin Fund deadline has been pushed to October 19, according to separate filings by the regulator.
The SEC explained that it requires more time to thoroughly evaluate the proposed rule changes and the concerns raised, particularly in the case of the WisdomTree fund. Bitwise CIO Matt Hougan expressed no surprise at the SEC’s decision during a Bloomberg interview, given the typical 45-day window for responding to spot BTC ETF applications, which concludes on September 1, with the next pivotal deadline being October 16.
The SEC has yet to approve a spot Bitcoin ETF, citing concerns related to fraud and market manipulation. While a BTC futures ETF was permitted to trade in 2021, a spot BTC ETF still remains elusive for U.S. investors.
In contrast, Europe has witnessed the launch of its first Bitcoin spot ETF on the Euronext Amsterdam stock exchange. The Jacobi FT Wilshire BTC ETF, managed by Jacobi Asset Management, is the continent’s sole regulated exchange-traded fund that directly holds BTC.
Bitcoin Headed For A Bumpy Road Ahead
Trading under the symbol BCOIN, this ETF entrusts Fidelity Digital Assets with custodial responsibilities and boasts significant collaborators such as Flow Traders as market makers, with Jane Street and DRW serving as authorized participants.
As Bitcoin’s future remains uncertain, investors brace themselves for potential turbulence ahead. Historical data suggests that September typically brings volatility to the cryptocurrency, but ETF analysts recommend shifting focus to mid-October as the next pivotal period to monitor. Bloomberg ETF analyst James Seyffart has stated that delays in spot BTC ETF approvals were anticipated, estimating a 75% chance of approval by the end of the year, with the mid-October deadlines marking the SEC’s final decisions for 2023.