SEC Delays Four Bitcoin ETF Applications

Reading Time: 2 minutes
  • The SEC has delayed four Bitcoin ETF applications until the end of the year
  • All four track the Bitcoin price rather than being Bitcoin futures ETFs
  • SEC chair Gary Gensler has spoken positively about Bitcoin futures ETFs this year

The Securities and Exchange Commission (SEC) has delayed ruling on four Bitcoin ETF applications, pushing them back until late November at the earliest. The SEC frequently kicks Bitcoin ETF applications down the road for as long as it can, using up all the extensions permitted within the rulebook before, so far, rejecting them. There is more optimism however that 2021 could see a Bitcoin ETF, albeit one based on futures rather than spot Bitcoin, meaning that these four delays could well simply be precursors to more rejections.

SEC Delaying Applications Until the Last Minute

The four Bitcoin ETFs in question, filed by Global X/Cboe, Valkyrie/Nasdaq, Kryptoin/Cboe, and WisdomTree/Cboe, all made their filings for physical Bitcoin ETFs, right before SEC chair Gary Gensler started making positive noises about futures-backed Bitcoin ETFs. ETF applications should be ruled on within 180 days, but the SEC can delay this by another 60 days if it thinks it needs more time to assess its merits.

In the past it has always taken the full time allocation and the same has applied here, with all four set to go the distance. The first ruling will be on November 21 and the latest, Kryptoin’s, will be ruled on by December 24.

Valkyrie May Have Missed Bitcoin ETF Boat

Valkyrie seems to have almost become resigned to the fate of their physical Bitcoin ETF with news, in the wake of Gensler’s positive remarks over a Bitcoin futures ETF, that it filed a Bitcoin futures ETF this week. Valkyrie’s name is now added to a list that includes VanEck, Invesco, ProShares, and more, all hoping to get first mover advantage.

Given Valkyrie’s late application however (the others applied in August) they now find themselves at the back of the queue and risk missing out on the physical and futures Bitcoin ETF.