SEC Delays WisdomTree’s Spot Bitcoin ETF Application Alongside Others

In a move widely anticipated by industry experts, the US Securities and Exchange Commission (SEC) has announced a delay in the review process for WisdomTree’s spot Bitcoin (BTC) exchange-traded fund (ETF) application. 

Seven Bitcoin Spot ETF Applications Stalled by SEC Delays

According to James Seyffart, Bloomberg’s ETF expert, the delay in the review process may extend for an additional 45 days. 

This delay is part of a series of postponements affecting multiple ETF applications, including those submitted by Invesco and Galaxy Digital. 

Even Valkyrie Funds’ application, which was originally due on Monday, is subject to this delay. In total, seven ETF applications are expected to experience delays today.

WisdomTree, a prominent global exchange-traded fund provider, had previously filed for a spot Bitcoin ETF application with NYSE Arca in 2022, but without success. However, the firm refiled the ETF application in July 2023.

Nevertheless, WisdomTree’s Jeremy Schwartz, the firm’s global chief investment officer, expressed optimism about the current filing. 

In an interview on CNBC’s “ETF Edge,” he noted that the firm has successfully launched products in Europe, where regulators have been more receptive and have gained confidence in the market infrastructure and custodial arrangements.

The Securities and Exchange Commission (SEC) had previously rejected WisdomTree’s applications in 2021 and 2022, citing concerns about investor protection and the public interest. 

Schwartz hopes that the changes made in the updated filing will address the SEC’s concerns, including implementing data sharing agreements, surveillance mechanisms, and new approaches to mitigate market manipulation risks.

WisdomTree’s objective is to introduce a spot Bitcoin ETF, allowing investors to gain exposure to Bitcoin’s price movements without directly owning the cryptocurrency.

The delay in the SEC’s application review highlights the cautious stance the regulatory body takes towards cryptocurrency-related financial products, reflecting its ongoing efforts to regulate and oversee the nascent industry.

As the cryptocurrency industry and investment landscape continue to evolve, market participants eagerly anticipate the SEC’s final decision on WisdomTree’s spot Bitcoin ETF application, as well as the outcomes of other pending applications.

The outcome of these deliberations will undoubtedly have a significant impact on the broader cryptocurrency ecosystem and the availability of regulated investment vehicles for Bitcoin and other digital assets.

BTC’s sharp decline on the daily chart to the $26,000 level. Source: BTCUSDT on TradingView.com

However, Bitcoin has remained in a persistent downtrend, unable to sustain its position above the $27,000 mark, despite briefly reaching a high of $27,500 on Wednesday.

Presently, Bitcoin has retraced once again to the consolidation level just above $26,100, experiencing a decline of over 4% in the past 24 hours. Additionally, over the past 30 days, BTC has consistently traded downwards, accumulating losses of more than 10% during this time frame.

Featured image from iStock, chart from TradingView.com

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