The US Securities and Exchange Commission (SEC) has delayed its decision on WisdomTree’s spot Bitcoin ETF. According to a filing, the SEC will take more time to review the proposal before making a decision.
WisdomTree had filed its application for a Bitcoin ETF in March 2021. The proposed ETF would invest directly in Bitcoin, allowing investors to gain exposure to the cryptocurrency without having to hold it directly.
The SEC has been hesitant to approve any Bitcoin ETFs in the past, citing concerns about market manipulation and investor protection. Several other firms have also filed applications for Bitcoin ETFs, including VanEck, which recently filed a proposal for a Bitcoin futures ETF.
Background
WisdomTree is a New York-based asset manager that offers exchange-traded funds (ETFs) and exchange-traded products (ETPs). The company manages over $75 billion in assets and has a presence in Europe, Japan, and Canada.
Bitcoin ETFs have been a hot topic in the crypto industry for several years now. While several countries, including Canada and Brazil, have approved Bitcoin ETFs, the US has yet to do so. The SEC has rejected several Bitcoin ETF proposals in the past, including applications from the Winklevoss twins and SolidX.
Why the Delay?
The SEC’s decision to delay its ruling on WisdomTree’s Bitcoin ETF is not surprising. The agency has delayed several other Bitcoin ETF proposals in the past, including applications from VanEck and Bitwise.
The SEC typically has 45 days to make a decision on Bitcoin ETF proposals, but it can extend this period by up to 240 days. The agency has not given a reason for the delay in WisdomTree’s case.
What Does This Mean for the Crypto Industry?
The delay in the SEC’s decision on WisdomTree’s Bitcoin ETF is unlikely to have a significant impact on the crypto industry. While a Bitcoin ETF would make it easier for institutional investors to gain exposure to the cryptocurrency, it is not essential for the industry’s growth.
Many investors have already found ways to invest in Bitcoin through other means, such as buying it directly or investing in crypto-focused funds. Additionally, the SEC’s delay is not a rejection, and there is still a possibility that the agency could approve WisdomTree’s proposal in the future.
Related:Crypto Community Jubilant Over Grayscale SEC Decision, Uncertainty Remains
Conclusion
The SEC’s decision to delay its ruling on WisdomTree’s Bitcoin ETF is not unexpected, given the agency’s history with Bitcoin ETF proposals. While a Bitcoin ETF would be a significant development for the crypto industry, its absence is unlikely to hinder the industry’s growth. Investors will continue to find ways to invest in Bitcoin, regardless of whether or not a Bitcoin ETF is approved.
