SEC Further Delays its Decision for Valkyrie Bitcoin Fund ETF

Investment asset management firm Valkyrie has had its spot Bitcoin (BTC) Exchange Traded Fund (ETF) application decision postponed by the United States Securities and Exchange Commission (SEC).

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In separate filings, BlackRock, Invesco and Bitwise also received the same news. The regulator claims to be instituting additional proceedings to decide if their ETF applications should be approved or not.

In its filing to Valkyrie, the SEC said that “Institution of proceedings is appropriate at this time in view of the legal and policy issues raised by the proposed rule change” while adding that this does not indicate the Commission has reached any conclusion with respect to any of the issues involved.

SEC Postpone Decision For Seven ETF Applications

Before now, Valkyrie already offers a Bitcoin Strategy ETF and a Bitcoin Miners ETF. It reapplied for a spot BTC ETF with the SEC in June. The plan was to list shares of the Valkyrie Bitcoin Fund on the Nasdaq exchange under the ticker BRRR. Markedly, the proposed ETF will hold BTC as a reflection of the performance of the CME CF Bitcoin Reference Rate, New York Variant.

However, at the beginning of September, the SEC postponed its decision for Valkyrie’s application for spot BTC ETF. This also included that of BlackRock, Fidelity, WisdomTree, Invesco, VanEck, and Bitwise. The timeline was extended to mid-October making October 16-19 the second deadline date.

Commenters Opinion is Requested 

Now, the latest decision to postpone comes two weeks earlier than the second deadline date. It also comes on the heels of the supposed U.S. government shutdown scheduled for October 1st. The regulator is asking for the input of the public on Valkyrie’s application. 

“What are commenters’ views generally on whether the Exchange’s proposal is designed to prevent fraudulent and manipulative acts and practices?” it wrote. “What are commenters’ views generally with respect to the liquidity and transparency of the bitcoin markets and the bitcoin markets’ susceptibility to manipulation?” the Thursday filing stated.

SEC’s ARK 21Shares Decision Comes in 2024

Similarly, ARK Investment Management and 21Shares were equally asked by the SEC to wait till next year for its decision on their joint Bitcoin ETF application citing that it needs more time to consider the rule change. The SEC’s decision for the ARK 21Shares Bitcoin ETF was supposed to be due by November 11.

Noteworthy, the U.S. regulator has rejected ARK 21Shares’s application two times in a row. It is not yet clear if this would be another rejection. 

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