What’s Happening with Bitcoin ETFs?
The United States Securities and Exchange Commission (SEC) has decided to make us all wait just a little longer. They’ve extended the timeline for deciding on spot Bitcoin (BTC) exchange-traded fund (ETF) applications from WisdomTree and One River. Yes, the suspense is palpable, folks.
A Shift in Timelines
Originally, the SEC had a packed schedule, but according to filings, they’ve chosen to kick the can down the road. WisdomTree’s Bitcoin Trust will now be under the microscope until May 15, while One River’s Carbon Neutral Bitcoin Trust has until June 2. So reset your calendars, because it’s not over yet!
The Backstory
WisdomTree is no stranger to ETF heartbreak; they faced rejection for a similar application back in December 2021. What was that rejection about, you ask? Well, the SEC was convinced that the BZX Exchange hadn’t provided sufficient data to ensure the crypto market was safe from the naughty fingers of manipulation and fraud. As a result, WisdomTree gave it another shot in February 2022. Talk about determination!
One River’s Journey
On the other hand, One River is tiptoeing closer to their deadline after officially submitting their application to the NYSE Arca on October 5, 2021. Initially, all eyes were on April 3, when it was expected that a decision would be announced. Instead, the SEC opted for a 60-day extension. Will their perseverance pay off? Only time (and the SEC) will tell!
The ETF Rollercoaster
U.S. regulators have been less than enthusiastic when it comes to approving spot Bitcoin ETF applications. Instead, they’ve opened the floodgates to derivatives—those pesky products tied to Bitcoin but not directly involving it. A bit like enjoying the aroma of a delicious pizza without actually taking a bite, right? Despite some defeats, funds linked to BTC strategies found favor with the SEC, and names like Valkyrie and ProShares secured approvals in 2021.
Quote of the Day: “The Commission finds that it is appropriate to designate a longer period… so that it has sufficient time to consider the proposed rule change…” What a mouthful!
Conclusion
So, as we all wait with bated breath for the SEC’s decisions, one thing is clear: the intrigue surrounding Bitcoin ETFs continues unabated. As an investor, it’s vital to stay informed and ready for whatever twists this thriller may take next. Grab your popcorn, folks!
