2023-09-01 01:11:02
© Reuters. SEC Delays All Spot Bitcoin ETF Orders In Single Decision
Blockmarket – The US Securities and Exchange Commission (SEC) chose to delay its decision on all pending applications for spot exchange-traded funds (ETFs), including those submitted by industry giants such as BlackRock (NYSE:) and Fidelity.
A Comprehensive Decision
Instead of dealing with applications individually, the SEC opted for a global approach, suspending the evaluation of all proposed Bitcoin ETFs. While not fully detailing its reasons, the commission frequently raised concerns about investor safety and market stability.
BlackRock and Fidelity, two of the world’s largest asset managers, were among the many institutions awaiting approval. An SEC approval for these corporations would be considered a significant step forward, signaling greater potential for cryptocurrencies to be accepted in the traditional financial sector.
Market Reaction
The postponement was met with mixed reactions. While some saw this as an indication of the SEC’s prudence and diligence, others expressed frustration, arguing that the decision is holding back the evolution of the cryptocurrency market.
The SEC’s decision comes at a time when institutional interest in Bitcoin and other cryptocurrencies is at an all-time high, with many seeing ETFs as a bridge between the crypto space and traditional financial markets.
Next steps
Now, with all Bitcoin ETF applications on hold, the focus shifts to when and how the SEC will finally make a decision. The commission has a new deadline to review and deliberate on the requests. The deadline stipulated by the American regulatory body varies between January and March 2024 for the various ETF applications in progress.
The market awaits with anticipation, given that the eventual approval of a Bitcoin spot ETF in the United States would have major implications for the industry, facilitating the entry of large players in the traditional market such as BlackRock, which alone holds over $9 trillion dollars in assets under management.
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