SEC Postpones Decision on Grayscale and Bitwise Bitcoin Spot ETF to Early February

The US Securities and Securities Exchange Commission (SEC) continues to delay the physically-backed Bitcoin exchange-traded fund (ETF) from trading.

Earlier this month, the SEC rejected WisdomTree’s application for a spot Bitcoin ETF after delaying it in June. A week ago, the asset manager amended its filing with “significant protection” for investors.

This week, the SEC has postponed two Bitcoin ETF proposals: Bitwise Bitcoin ETP Trust and Grayscale Bitcoin Trust’s conversion to Bitcoin ETF to February 1 and 6, 2022, respectively.

“The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the comments received,” said the regulator in its statement.

Back in mid-October, asset manager Bitwise filed for a spot Bitcoin ETF which would provide exposure to “actual BTC” rather than indirect exposure through Bitcoin futures. Bitwise also filed a Bitcoin futures-based application but dropped it in November.

In October, the Proshares Bitcoin Strategy ETF (BITO) became the first futures-based Bitcoin ETF to make its debut. The first-mover advantage saw it amassing more than $1 billion in assets. Two other Bitcoin futures ETFs have since then begun trading, but they manage to attract only a fraction of BITO’s funds.

Meanwhile, the world’s largest digital asset manager, Grayscale, filed an application on Oct. 19 to convert its flagship Bitcoin Trust holding $30.8 billion in assets into an ETF.

As we reported this week, Coinbase also sent a letter to the SEC in which it urged the regulator to approve Grayscale’s application arguing that treating spot Bitcoin ETPs differently from futures-based ETPs can “undermine confidence” in the agency.