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SEC Set to Decide on Five Bitcoin ETFs

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Before the Labor Day weekend, the SEC is anticipated to make definitive decisions on Bitcoin ETF applications from five companies.

A number of companies have submitted applications for Bitcoin (BTC) exchange-traded funds (ETFs) to the U.S. Bitwise’s proposal is undergoing review by September 1st, while the remaining applicants require their submissions to be evaluated by the following day. There is widespread speculation that the SEC will issue its rulings before the start of the extended weekend.

Cautious Outlook on Approvals for Bitcoin ETFs Amidst SEC’s Historical Delays

Considering the SEC’s historical inclination to postpone decisions on filings related to cryptocurrencies, there is limited optimism for swift approvals. Earlier this month, the regulatory agency prolonged its evaluation of a spot Bitcoin ETF application from 21Shares in collaboration with ARK Investment Management. This inclination to defer actions is not a recent occurrence, as the SEC has either rejected or postponed numerous Bitcoin ETF applications over several years.

Grayscale’s Pursuit of Bitcoin ETF Faces Challenges Amidst SEC Resistance

In the previous year, Grayscale Investments encountered obstacles in its endeavor to transform its Bitcoin trust into an ETF. The SEC pointed to vulnerabilities within the cryptocurrency markets, including potential fraud and manipulation, as the reasoning behind their verdict. In response, Grayscale filed a lawsuit, urging the U.S. Court of Appeals to overturn what they labeled an “arbitrary and discriminatory” decision.

Both experts and members of the community have consistently advocated for the establishment of a spot-Bitcoin ETF. According to their perspective, such a financial instrument would not only democratize Bitcoin investments for the average person but also facilitate the integration of cryptocurrencies into conventional financial systems.

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Elliott Stein, a senior litigation analyst, stated to Bloomberg Intelligence, “If the SEC retains the option to delay, it’s likely they will do so, at least until the court delivers a verdict on the Grayscale case.” Stein approximates the likelihood of Grayscale’s success in court at 70%.

Evolution of Bitcoin ETFs: Impact of BlackRock’s Filing Acceptance

The landscape surrounding Bitcoin ETFs is undergoing transformation. The approval of BlackRock’s Bitcoin ETF filing in June has brought about a subtle change in the dynamics. Renowned for its track record of effectively launching ETFs. BlackRock’s application has prompted certain industry experts to conjecture that the prospects for approval could be on the rise.

Moreover, the sector has experienced a notable increase in requests, extending beyond Bitcoin ETFs to encompass more intricate financial products such as Ethereum (ETH) ETFs. Recent indications propose that the SEC could grant approval for Ethereum ETFs to commence trading, potentially as soon as October.

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