US SEC Extends Deadline for Approving Grayscale and Bitwise’s Bitcoin ETF Applications https://ift.tt/3J2Q5oc

The United States Securities and Exchange Commission (SEC) has postponed its decision regarding the Bitwise Bitcoin ETP Trust and Grayscale Bitcoin Trust applications.

SEC Extends Approval Date to Feb 2021

The regulatory body has issued two new extension dates for both applications to determine whether to approve, reject, or “institute proceedings to determine whether to disapprove” them.

“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,” the SEC stated in the notices sent to both firms.

The financial regulator expects to make a decision on February 1, 2022, for the Bitwise Bitcoin ETP Trust and February 6, 2022, for the Grayscale Bitcoin Trust.

Bitwise Bitcoin ETF Trust

Earlier in October, Bitwise Asset Management applied with NYSE Arca for a Bitcoin ETF. It will provide its clients exposure to “actual BTC” rather than derivatives like Bitcoin futures that the company had previously filed with the SEC but later withdrew due to regulatory concerns.

Per the filing, Bitwise intends to register about 1,000 shares of its Bitwise Bitcoin ETP Trust with a proposed maximum offering price of $25, using the CME U.S. Reference Rate as a price reference for Bitcoin in the trust.

The company’s chief investment officer, Matt Hougan, expressed confidence that the SEC will approve its application this time around despite several failed attempts.

“The market has matured. An actual BTC ETF can now be approved,” he said.

Grayscale to Convert Bitcoin Trust to ETF

Around the same time as Bitwise’s filing, Grayscale Investments, the world’s largest digital currency asset manager, also submitted an application to the SEC to convert its Grayscale Bitcoin Trust (GBTC) into a Bitcoin Spot ETF.

The company has a whopping $44 billion in assets under management (AUM), according to a December 17 update.

The proposed Grayscale Bitcoin Spot ETF would be backed by actual units of the digital assets and not just linked to it through derivative contracts.