SEC delays ruling on Grayscale’s bid to launch a spot Bitcoin ETF

The U.S. Securities and Exchange Commission (SEC) delayed the decision on Grayscale Investments’ application to launch a spot Bitcoin ETF.

The agency said it needed more time to study the firm’s ability to curb fraudulent or manipulative practices in the spot market. It is also assessing the degree to which its liquidity and transparency would meet the standards for an underlying asset for an exchange-traded fund.

The SEC is inviting public comments for the next 21 days. Submissions are due within the following two weeks.

Bloomberg analyst James Seyffart estimated that a final ruling on Grayscale’s application is expected around July 6.

Annnnndd here it is. The official SEC delay on $GBTC attempt to convert to a spot #Bitcoin ETF. 100% expected. Final decision date for $GBTC will be on/around July 6th. Link for those interested: https://t.co/9YJVbMbBBa https://t.co/wZ4NErNhBz pic.twitter.com/M6KbSQzpZ3

— James Seyffart (@JSeyff) February 4, 2022

On February 2, the Commission delayed the decision on a similar Bitwise application.

Grayscale filed an application to convert the digital-gold-backed trust into an ETF based on the first cryptocurrency on October 19, 2021.

On December 17, following the SEC’s review, the Commission delayed issuing its decision until February 6, 2022.

Earlier the regulator approved applications to launch Bitcoin-futures ETFs from VanEck and Valkyrie Investments, as well as ProShares. Grayscale Investments described the SEC’s actions as arbitrary and unlawful.

In December 2021 the regulator rejected WisdomTree’s plan to launch a spot Bitcoin ETF. Earlier the Commission took a similar decision regarding a VanEck proposal.

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