SEC extends review period for four bitcoin-ETF applications

The U.S. Securities and Exchange Commission postponed decisions on four bitcoin-ETF applications from Global X (to November 21), WisdomTree (December 11), Kryptoin Investment Advisor (December 24) and Valkyrie Investments (December 8).

The Bloomberg ETF senior analyst Eric Balchunas noted that all filings were filed in accordance with the Securities Act of 1933 — i.e., physically backed exchange-traded funds.

Yes, the SEC has kicked can on bitcoin ETF approval BUT that is for the physically-backed ones under ’33 Act. The futures ETFs filed under the ’40 Act (which Genz loves) are very much alive and likely on schedule (we think 75% chance approved in Oct). Here’s our odds: https://t.co/cSZ8aDsITl pic.twitter.com/DUEvRANvO7

— Eric Balchunas (@EricBalchunas) October 2, 2021

“Futures ETFs, whose applications are filed under the Investment Company Act of 1940, are very viable and, likely, the process is on schedule (we estimate a 75% chance of approval in October),” Balchunas added.

The South Korean Mirae Asset Global Investments’ subsidiary (which manages about $623 billion) — Global X — submitted an application to launch a bitcoin-ETF in July 2021.

WisdomTree submitted an application in March, and in April the Commission began reviewing it.

The regulator had already delayed a decision on Kryptoin Investment Advisor in June. The company had filed the application in 2019, and in April 2021 updated the form.

Valkyrie Investments awaits a decision on its product since January. In August the firm also filed for an actively managed ETF, linked to bitcoin futures.

In early August, SEC Chairman Gary Gensler said that the Investment Company Act of 1940 provides for stronger protections. He stressed that an ETF meeting the regulator’s requirements could be approved.

Subsequently, the official confirmed that exchange-traded funds based on cryptocurrency derivatives have a chance of getting the green light from the Commission.

Bloomberg analysts say that futures-based ETFs are less effective at correlating with Bitcoin than spot funds.