SEC postpones decision on Bitwise Bitcoin spot ETF application again

The Securities and Exchange Commission (SEC) has refused to approve a Bitcoin exchange-traded fund (ETF) application before it, instead choosing to postpone its decision again.

SEC asks for comments on Bitwise ETF application

Available information from a recent filing from the regulator revealed that it has postponed its decision on the proposal of  Bitwise Asset Management Bitcoin ETF application. 

According to the filing, the SEC was postponing its decision because it needed more time to get more information about the application. 

The SEC is requesting for information on the expected trading volume, how the ETF plans to protect investors from fraud and manipulations and other relevant matters as it relates to the application. 

Bitwise has 21 days to respond to the commission’s request for information.

Notably, this is the second time that the foremost regulator would be choosing to postpone its decision on Bitwise ETF application. The decision was first postponed in December before it was postponed again on February 1.

Per Jake Chervinsky of the Blockchain Association, the new deadline for the Gary Gensler-led commission is August 14; however, it could still choose to delay “one more time to a final deadline of October 13.”

Latest delay shows SEC remains unconvinced about a Bitcoin spot ETF

The SEC, under Gary Gensler, has only approved Bitcoin futures ETF and has maintained that spot ETF applications open investors to fraud and manipulation, a situation it is seeking to avoid.

This has informed SEC’s decision to either reject or postpone its decision on several Bitcoin spot ETF applications. For example, Valkyrie and Kryptoin saw their Bitcoin spot ETF applications rejected in December based on the above reasons. 

Aside from this, the agency also postponed its decision on Grayscale’s application.

On the other hand, Bitcoin futures ETFs like ProShares, Valkyrie (BTF), and VanEck (XBTF) were approved by the commission last year.