SEC Set to Rule on Bitcoin ETFs by BlackRock and Others This Week

10/16/2023

The U.S. Securities and Exchange Commission (SEC) has been postponing its decision regarding a Bitcoin Exchange-Traded Fund (ETF). However, this week may mark the much-anticipated verdict that both fund issuers and the cryptocurrency industry have eagerly awaited.

Hopes for the approval of other ETFs gained momentum following a recent decision by the SEC on October 13, when it chose not to contest a court ruling that found the rejection of Grayscale Investments' application for a Bitcoin spot ETF to be unjust. According to influential analysts in the cryptocurrency market, this move could set a precedent for other asset management companies, including BlackRock, Fidelity, and Invesco, which have similar applications pending SEC review for Bitcoin spot ETFs, increasing their chances of approval.

As of the time of this publication, it remained uncertain whether the SEC would decide or delay decisions concerning other Bitcoin funds proposed by companies such as BlackRock, Fidelity, Invesco, Bitwise, VanEck, WisdomTree, and Valkyrie. The deadlines for upcoming decisions or postponements regarding these proposals are slated between October 16 and 19, with the final date set for mid-March 2024.

The primary expectation is that, if approved, Bitcoin ETFs could enhance the cryptocurrency's overall acceptance, including among conservative investors. The entry of reputable financial institutions like BlackRock and Fidelity into this market would lend greater legitimacy to the cryptocurrency sector, potentially attracting a broader range of financial institutions and institutional investors to the digital asset market, thereby fostering widespread confidence and acceptance.