The US Securities and Exchange Commission (SEC) has begun the process of reviewing the latest applications for spot Bitcoin ETFs. The review, which is expected to be carried out on a case-by-case basis, could take between 45 and 240 days, in which case we will have to wait until March 2024 before we can expect a response from the regulator
SEC begins review process for latest BTC ETFs
The Bitcoin (BTC) spot ETF race, whose hype was largely propelled by giant BlackRock’s application filed last month, has taken a new turn. The US Securities and Exchange Commission (SEC), the regulator responsible for accepting or rejecting such applications, is set to begin reviewing the latest round of filings.
The Bitwise Spot ETF application was published in the docket yesterday, Tuesday 18 July, and the following applications will be published today:
- BlackRock: iShares Bitcoin Trust
- WisdomTree: WisdomTree Bitcoin Trust
- Fidelity: Wise Origin Bitcoin Trust
- Invesco: Galaxy Bitcoin ETF
- VanEck: Bitcoin Strategy ETF
Valkyrie’s Bitcoin ETF application, recognized yesterday by the SEC, is expected to be filed with the registry in the next 20 days. The registration of these Bitcoin ETF applications by the SEC means that the regulator is officially entering the analysis period for these applications.
This period can vary from 45 to 240 days, with the SEC free to request additional time to give its approval. If this were the case, the regulator could request an initial extension of 45 days, then a second, then 90 and finally 60 days. After this last period, the SEC is obliged to give its final response.
An initial response from the regulator is expected on 13 August concerning the Bitcoin ETF filed jointly by Ark Invest and 21 Shares (ARK 21Shares Bitcoin ETF). This decision is eagerly awaited, as it will be the first given by the SEC since BlackRock entered the ETF race.
Ark and 21 Shares have also recently revised their application to include a surveillance agreement (with Coinbase), a sine qua non for approval by the regulator.
Nothing is certain yet
As Bloomberg Intelligence analyst James Seyffart points out, the SEC is giving little indication as to whether it will approve these Bitcoin cash ETFs or not:
We and many others believed that if the SEC went and started a common clock for all the recent filings it might indicate positive news for approval because SEC was getting ready to approve all on same day. No such luck for Bitcoin ETF hopefuls. They’re sticking to the norms.
– James Seyffart (@JSeyff) July 18, 2023
” We and many others thought that if the SEC started a common clock for all recent filings, it might signal positive news for approvals, because the SEC would be preparing to approve them all on the same day. No such luck for Bitcoin ETF hopes. They’re sticking to standards. This obviously doesn’t mean final approval or rejection either way. We were just looking for an indication of how they might approach the thing. But the SEC is not showing its hand. “
In other words, the SEC could simply have decided to approach a common timetable for all BTC ETF applications, whereas in this case it seems set on dealing with applications on a case-by-case basis. Patience will therefore be required, as the deadline for applications considered this week may be extended until March 2024.
