SEC Delays Decision on Bitcoin ETFs, Impacting Key Players

The Securities and Exchange Commission (SEC) has deferred its verdict on Bitcoin ETFs (Exchange-Traded Funds), affecting several applicants including the prominent asset manager BlackRock, which had earlier spurred other entities to reapply.

Who has applied for a Bitcoin ETF with the SEC?

A range of asset managers, brokers, index fund providers, and other institutions have been awaiting approval from the SEC to launch a Bitcoin ETF, a move expected to draw both institutional and retail investors into the crypto realm. Here are the primary applicants:

BlackRock – Being the largest asset manager globally with $8.6 trillion in assets under management, BlackRock submitted its application for a spot Bitcoin ETF in mid-June, designating Coinbase as its primary data provider and crypto custodian. This move momentarily bolstered Bitcoin’s price as BlackRock’s involvement underscores a significant endorsement from the financial sector. The SEC commenced reviewing BlackRock’s application a month later.

Fidelity – Following BlackRock, financial behemoth Fidelity refiled its application. Initially, Fidelity had submitted an application in 2021, which was declined. However, in July this year, it reapplied to convert its Wise Origin Bitcoin Trust into an ETF.

VanEck – VanEck has been in the queue for a Bitcoin ETF approval since 2018, marking it as one of the pioneering applicants. After retracting its application earlier, VanEck re-entered the Bitcoin ETF arena in July 2023.

ARK Invest – Investment firm ARK has been anticipating the SEC’s green light for its ARK 21Shares Bitcoin ETF since June 2021.

Invesco and Galaxy Digital – Invesco collaborated with Galaxy Digital in seeking approval for the Invesco Galaxy Bitcoin ETF, a fund projected to be “physically backed” by Bitcoin, with Invesco acting as the sponsor.

Other notable institutions like WisdomTree, Valkyrie Investments, Bitwise, and GlobalX also have plans to introduce Bitcoin ETFs.

What impact does the SEC’s postponement have on the Bitcoin market?

By the end of August, Bitcoin was oscillating above the $28,000 mark, aiming to challenge the resistance at $30,000. However, the SEC’s procrastination concerning Bitcoin ETF approvals dampened market sentiment, causing Bitcoin’s price to retreat to a support level around $25,000.

In mid-September, bearish momentum gained traction, pushing the BTC price below the $25,000 threshold for the first time since mid-June, which was when BlackRock’s SEC filing had initially ignited a price rally.