Former SEC Chair Anticipates Inevitable Approval of Spot Bitcoin ETF Despite Delays
The United States Securities and Exchange Commission (SEC) has recently deferred decisions on multiple applications for spot Bitcoin exchange-traded funds (ETFs). However, the former SEC chair, Jay Clayton, remains optimistic that approval will ultimately be granted.
In a CNBC interview on September 1st, Clayton highlighted the significant support from major financial institutions for spot Bitcoin investment vehicles. He believes this represents a notable shift in how retail investors can gain exposure to cryptocurrencies. On August 31st, the SEC extended the review period for spot Bitcoin ETF applications submitted by BlackRock, WisdomTree, VanEck, Invesco Galaxy, Bitwise, Valkyrie, and Fidelity.
The SEC now has an additional 45 days, starting from the publication of the notice in the Federal Register, to decide whether to approve, deny, or further delay these ETF applications from the seven major firms. Clayton expressed his expectation of “progress on this going forward,” with the possibility of the SEC continuing to extend the deadlines for these applications until March 2024.
Clayton firmly asserted, “An approval is inevitable.” He stressed the unsustainable contrast between futures and cash products, hinting that this disparity cannot persist indefinitely.
Clayton’s perspective resonates with that of U.S. Court of Appeals Circuit Judge Neomi Rao, who, along with two colleagues, instructed the SEC to reevaluate asset manager Grayscale’s request to transform its Bitcoin Trust (GBTC) into a spot Bitcoin ETF. Rao pointed out that the SEC had previously granted approval for BTC futures ETFs and suggested that Grayscale’s proposal was “materially similar.”
These delays in ETF applications unfolded rapidly on August 31st, just ahead of the Labor Day holiday weekend in the United States. The next significant deadline for spot Bitcoin applications currently under review is set for October 7th, when the SEC is expected to announce its decision regarding the offering from fund manager Global X.
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