Why BlackRock ETF and Other Bitcoin Spot ETFs Are Facing Delays
In recent years, several companies have submitted applications to the U.S. Securities and Exchange Commission (SEC) for bitcoin spot exchange-traded funds (ETFs). However, the SEC has yet to approve any ETFs of this kind. The application from the massive asset manager BlackRock sparked new hope, but this too was short-lived. Now, the decisions for seven different applications, including BlackRock’s, have been delayed.
H2: BlackRock ETF Delayed Again
On June 29, the American Nasdaq stock exchange submitted an application for the iShares Bitcoin Trust. The iShares is the brand name for a collection of Exchange Traded Funds (ETFs) managed by BlackRock, and this fund would be a so-called spot ETF. This means that the fund holds ‘real’ bitcoins and aims to track the exact bitcoin price, rather than trading in bitcoin futures.
This news brought hope to other ETF issuers, who subsequently renewed their own applications. In total, there were seven different funds waiting for approval.
However, last Thursday, the regulator decided to postpone the final decision on BlackRock’s fund. This doesn’t mean that the fund has been rejected, but that the approval or rejection will happen at a later date. The new deadline is October 17, which is 45 days after the original application deadline. Unfortunately, the decisions for the six other funds have also been delayed, according to Bloomberg analyst Eric Balchunas.
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H2: Chance of Approval for Bitcoin ETF Is Growing
The delay is surprising because earlier this week, the news broke that Grayscale had won its lawsuit against the SEC. The lawsuit was regarding the SEC’s refusal to convert Grayscale’s largest bitcoin fund, GBTC, into a spot ETF. Now that the company has won the lawsuit, the SEC must reconsider the applications. This doesn’t guarantee approval, but analysts believe it increases the chances.
Positive signals are also emerging from the Bitcoin blockchain. According to a Bitfinex study, loyal HODLers have been actively accumulating coins since last March. Additionally, the amount of BTC on exchanges is currently at its lowest level in years.
Overall, while the delays in approving BlackRock’s ETF and other bitcoin spot ETFs are disheartening, recent developments suggest the potential for a change in regulatory stance. The outcomes of the lawsuits and the positive trends on the Bitcoin blockchain indicate an increased likelihood of approval for these ETFs in the future. However, investors and industry players will need to continue patiently waiting for the SEC’s final decision.
- bitcoin spot ETF