Several companies' applications for spot bitcoin exchange-traded funds (ETFs) have taken a step forward in the US Securities and Exchange Commission (SEC) process. The Federal Register received notice of a proposed rule change on July 19, allowing Bitcoin ETF filing s from BlackRock, Fidelity, Invesco Galaxy, VanEck, and WisdomTree. This publication gives the SEC the opportunity to accept or deny the request, extend the time allowed for review, or open the application for public comment.
These applications were initially filed in June, and the companies later amended the application to include Coinbase as a surveillance sharing partner, following SEC's concerns about the previous version's insufficiency. On July 18, Bitwise filed its own application for a spot BTC ETF, and Valkyrie is expected to file on July 21. The SEC now has an initial 45-day window to make a decision on these applications, with the possibility of extending the process by up to 240 days (until March 2024) for final approval or rejection.
While the SEC has not yet approved spot investment vehicles directly investing in cryptocurrencies like BTC, it did allow for ETFs linked to BTC futures starting in 2021. Recently, the Volatility Equity Trust launched one of the first leveraged bitcoin futures ETFs in the United States. Meanwhile, the SEC has been under scrutiny for its regulatory actions, and Chairman Gary Gensler has continued his approach of regulation through enforcement action. Several companies, including Binance and Coinbase, are facing SEC lawsuits in 2023.
