More decisions on Bitcoin ETFs come after rejection…

Bloomberg – Bitcoin ETF candidates received another dose of disappointment when US regulators refused to take a decision on such a product on Friday. But the next time you hear from them could be weeks from now.

The US Securities and Exchange Commission has to reach a conclusion on the Bitwise Bitcoin ETP Trust by September 1, according to a Bloomberg survey. Regulators can refuse, approve or delay. Decisions on orders for BlackRock, VanEck, WisdomTree and Invesco are due a day later, while others are delayed.

Cryptocurrency proponents are watching the dates because this time there is high expectation that – unlike previous attempts – an ETF that invests directly in Bitcoin can be given the green light. In particular, many have stuck to the fact that powerful asset management firm BlackRock has thrown its name into the race, with a nearly perfect track record of launching ETFs.

However, the path to a potential fund was not easy or fast.

“We expect these decisions to be delayed,” says James Seifart, an analyst with Bloomberg Intelligence. “The only thing that could change that view is if we get a decision in Grayscale v. SEC, and even then, we’ll likely see a delay in those Timelines too.” Grayscale is suing the Securities and Exchange Commission as it attempts to convert its trust fund from Bitcoin to an ETF.

Many members of the cryptocurrency community — and aficionados outside of it — have been pining for a Bitcoin ETF for years. They argue that this will not only make investing in Bitcoin more accessible to ordinary investors, but will also help bring the digital asset space closer to traditional financial markets. sOn the other hand, regulators have consistently cited fraud and manipulation as one of the reasons for not approving such a product. Gemini, founded by brothers Tyler and Cameron Winklevoss, was the first company to attempt to create an ETF physically backed by Bitcoin in 2013. It was rejected by the Securities and Exchange Commission (SEC).

But the recent excitement has encouraged issuers not only to try their luck with Bitcoin ETFs, but also with more exotic vehicles. Several companies have offered securities for Ether futures or Bitcoin and Ether futures funds. These ETFs are not currently listed in the US and earlier this year the SEC rejected Ether futures ETF bids.

Another positive sign that the SEC is softening its stance on cryptocurrency ETFs is the launch of the Volatility Shares 2x Bitcoin Strategy ETF (BITX ticker), according to the Coinbase Bytes newsletter. This fund debuted in June and has raised more than $20 million in assets. He was the first in his class to start trading.

The SEC initially has 45 days to decide applications for cash funding. This will be followed by another 45 days, then 90 and then 60 days, for a total of 240 days. It will have to make a decision within 240 days, according to Seyffart.

Many market watchers also expect another delay in September.

“The basic case for implementing an ETF should be for managers to do what they have been doing for years and use all their powers to delay the decision,” said Stéphane Ouellet, CEO of FRNT Financial, an institutional platform focused on digital assets. . “Even if these products are eventually approved, it would be very surprising to see them approved the first time you can.”