SEC Delays Decision on Grayscale and Bitwise Spot Bitcoin ETFs

The U.S. Securities and Exchange Commission (SEC) is pushing out its review of proposals by Grayscale and Bitwise for their spot bitcoin exchange-traded funds (ETFs) by 45 days, according to filings around both products. Grayscale is owned by Digital Currency Group, which is the parent company of CoinDesk.

• The decision on the Grayscale Bitcoin Trust will be pushed to Feb. 6, 2022, while that for the Bitwise Bitcoin ETP Trust will move to Feb. 1, 2022, the separate dockets noted.
• The SEC said it’s taking the extended period to have “sufficient time to consider the proposed rule change and any comments received.”
• The SEC has typically delayed its decisions on spot bitcoin ETFs as long as possible. If it decides to, it can still delay its decision on the Bitwise and Grayscale products by several months past February.
• In December, the SEC rejected Wisdom Tree’s proposal for a spot bitcoin ETF, while last month, it rejected Van Eck’s proposal.
• SEC Chair Gary Gensler has indicated multiple times in the past that he prefers to see a bitcoin futures ETF over one that holds bitcoin directly. As of now, three bitcoin futures ETFs have begun trading in the U.S.

Read more: Coinbase Backs NYSE Arca’s Push for Grayscale Bitcoin Trust Conversion to ETF