October 3, 2021

SEC extends deadline for four applications to launch bitcoin-ETF

SEC extends deadline for four applications to launch bitcoin-ETF

The Securities and Exchange Commission (SEC) has delayed a decision on bitcoin ETF applications from Global X (until November 21), WisdomTree (December 11), Kryptoin Investment Advisor (December 24) and Valkyrie Investments (December 8).

Bloomberg senior ETF analyst Eric Balchunas noted that all of the filings are completed under the Securities Act of 1933 - we're talking about exchange-traded funds with physical collateral.

The futures ETFs whose applications are completed under [the Investment Company Act of 1940] are very viable and the process is probably on track (we think there's a 75% chance of approval in October), Balchunas added.

A subsidiary of South Korea's Mirae Asset Global Investments (which manages $623 billion in assets), Global X, has applied to launch a bitcoin-ETF in July 2021.

WisdomTree filled out the application in March, and the Commission began reviewing it in April.

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

Valkyrie Investments has been awaiting a decision on its product since January. The firm also submitted an application in August to launch an actively managed ETF tied to bitcoin futures.

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

The official later confirmed that exchange-traded funds based on cryptocurrency derivatives have a chance to get the green light from the Commission.

As a reminder, according to Bloomberg analysts, futures-based ETFs correlate less effectively with bitcoin compared to spot funds.

Jack Evans

About the author

I became a crypto asset owner in 2014, when the industry was in its infancy. Before that, I was working in the classic US and European stock markets. Since then, I have gained extensive experience in both cryptocurrency investing and day trading. I am happy to share with readers my experience with crypto exchanges, DeFi and NFT instruments. 

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