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The SEC has unsurprisingly extended its deadline on a decision to approve or disapprove two more spot Bitcoin ETF applications.
The United States Securities and Exchange Commission (SEC) has delayed its decision on spot Bitcoin (BTC) ETF proposals from WisdomTree Investments and One River Asset Management. Disclosed in separate filings on Monday, the move continues the SEC’s pattern of denying or stalling spot BTC ETF applications.
In each of the filings, the regulatory agency issued a similar statement on WisdomTree Bitcoin Trust, and One River Carbon Neutral Bitcoin Trust. It read:
“The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised in the comments that have been submitted in connection therewith.”
The SEC now has until May 15th to decide on WisdomTree’s BTC investment vehicle. A decision for One River’s now has a June 2nd deadline.
WisdomTree SEC Bitcoin ETF
This setback is not the first for WisdomTree in its quest to launch a spot BTC ETF. Back in December 2021, the SEC had rejected the New York-based asset manager for the same filing. According to the regulator, WisdomTree failed to provide adequate data concerning the intricacies of the crypto market. Some of these included how resistant the market is to manipulation or how containable plausible sources of fraud could be. However, WisdomTree was able to come away with these issues raised and head back to the drawing board. Eventually, the firm resubmitted a new proposal in February of this year. Upon approval, the WisdomTree Bitcoin Trust will list on the Cboe BZX Exchange.
One River initially filed for its Carbon Neutral Bitcoin Trust in May of 2021. According to the investment manager, backed by billionaire investor Alan Howard, the carbon-neutral BTC ETF would hold the number one token. However, it will also incorporate the purchase of carbon credits and value its shares with an additional adjustment to cover the expense of offsetting said carbon credits. Furthermore, One River filed for a proposed rule change on October 5th which was published to the federal register for comments. The SEC was supposed to reach a decision or delay its decision-making process on the crypto ETF by April 3rd. However, the regulatory agency instead sought to extend the deadline for an additional 60 days to June 2nd, 2022.
Generally, the SEC can choose to extend its window of deliberation before delivering a verdict on an application. The SEC can legally delay for up to 240 days. In addition, the Commission can also opt to open up the application to public comment in that same period.
Up until now, the SEC has delayed or rejected all applications for spot BTC ETFs.