The position of Bitcoin ETF proponents is that America can take the market lead from other advanced economies.
The United States Securities and Exchange Commission (SEC) has rejected the spot Bitcoin (BTC) Exchange-Traded Fund (ETF) application from Kryptoin Investment Advisors LLC. First reported by Coindesk, the rejection comes weeks after the market regulator bounced the spot Bitcoin ETF application proposal from VanEck, a move which cements the SEC’s stance against ETF’s that hold actual Bitcoin.
There is a change in the overall position of the SEC as it relates to the allowance for Bitcoin ETFs. The regulator granted approval for two bitcoin futures ETFs back in October when it greenlighted the application from the ProShares Bitcoin Strategy ETF (BITO) and the Valkyrie Bitcoin Strategy ETF (BTF). With the shift in this positioning, many fund managers renewed their enthusiasm for a spot Bitcoin ETF.
SEC Chairman, Gary Gensler has always expressed his positive disposition to a futures-based Bitcoin ETF, and from this affirmation, he expects fund managers looking to float a related product for their clients to focus on the futures linked version. The spate of rejections thus far has sent the message in clear terms, and per reports, a number of these key stakeholders are not backing out from the fight for a spot Bitcoin ETF in the US.
The position of Bitcoin ETF proponents is that America can take the market lead from other advanced economies like Germany, Canada, Switzerland, and Brazil amongst others, all of which have functioning Bitcoin ETFs trading on national bourses. The SEC has been so wary of the supposed immaturity of the market in terms of asset distribution, trusted price tracker, and the incidence of price manipulations.
Prospective Bitcoin ETF applicants like Bitwise claim it has figured out what the SEC needs and it is working assiduously to meet these requirements in its current Bitwise Bitcoin Strategy ETF.
SEC Bitcoin ETF Timelines for Current Applicants
The spirit of innovation, uniqueness and competition in the digital currency ecosystem is notably always made manifest in the race to float a spot BTC ETF in the United States. According to etf.com, there are as many as 29 Bitcoin ETF applications that have been filed by American fund managers thus far with many still awaiting the SEC’s approval as of the beginning of December. This number is mixed between futures backed, and those billed to hold Bitcoin directly.
Amongst the applications still awaiting approval include One River Carbon Neutral Bitcoin Trust, filed by One River Digital Asset Management, the company that tapped former SEC chair, Jay Clayton, as advisor earlier in the year. Other asset managers including 21Shares, Galaxy Digital Capital Management, NYDIG Asset Management, and BlockFi also have applications awaiting the SEC’s approval.
Some of the applicants particularly Invesco Capital Management withdrew their applications for reasons best known to the company. Despite the bad outlook per the disposition of the SEC to spot BTC ETF applications, optimism still abounds amongst these applicants.
next