SEC defers decision on Invesco, WisdomTree bitcoin ETFs
The Securities and Exchange Commission delayed making a decision again on whether to approve the first U.S. exchange-traded fund that invests directly in bitcoin, disappointing advocates just days after a court ruling that was viewed by many as clearing a path for the long-awaited product.
The securities regulator, whose three-part mandate includes investor protection, deferred on filings from Invesco, Valkyrie and WisdomTree, according to documents posted on its website Thursday. SEC Chair Gary Gensler has consistently justified the opposition to the ETFs as necessary to protect investors from an industry that he says is rife with fraud.
The decision comes after Grayscale Investments won a key victory over the SEC. On Tuesday, a federal appeals court overturned the agency’s rejection of Grayscale’s application to convert its bitcoin trust into an ETF. In the decision, the denial was called “arbitrary and capricious” because the commission failed to explain its different treatment of similar products. ETFs that hold bitcoin futures were approved in 2021.
The SEC has to address an application by Bitwise by the end of Friday. The regulator will also need to soon weigh in on filings from BlackRock, VanEck and Fidelity.
UPDATE: The first delay order is in. This is for <a href=«https://twitter.com/WisdomTreeFunds?ref_src=» https:>@WisdomTreeFunds
spot <a href=«https://twitter.com/hashtag/Bitcoin?src=hash&ref_src=» https:>#Bitcoin ETF filing. As expected delaying for another 45 days. Expecting others to drop shortly CC <a href=«https://twitter.com/EricBalchunas?ref_src=» https:>@EricBalchunas pic.twitter.com/yTYvv9YHt9
— James Seyffart (@JSeyff) <a href=«https://twitter.com/JSeyff/status/1697328531519279217?ref_src=»
Read more on investmentnews.com
