The U.S. Securities and Exchange Commission (SEC) has postponed its decision on applications for spot bitcoin exchange-traded funds (ETFs) filed by major financial firms Invesco (IVZ), Fidelity Investments, Valkyrie, Bitwise, and WisdomTree (WT), as per documents published on the SEC’s website.
Bitcoin (BTC-USD) experienced a significant drop in value prior to this announcement, falling by 4.9% to $25.9K at 5:26 p.m. ET. However, the digital currency then surged to a peak of $27.9K on Tuesday following a court ruling that overturned the SEC’s decision to block Grayscale Investments from converting its bitcoin trust (OTC:GBTC) into an ETF that directly invests in bitcoin (BTC-USD).
Supporters of cryptocurrency argue that a spot BTC ETF would make it easier for investors to access the underlying asset and increase participation in the market. Co-Founder of Fundstrat Global Advisors, Tom Lee, even predicted earlier this month that bitcoin (BTC-USD) could surge to $150K if such a product is approved.
The SEC has set a new deadline to address Bitwise’s application by the end of Friday. WisdomTree’s (WT) proposal will be reviewed by October 17, followed by Valkyrie’s on October 19.
On August 11, the SEC extended its decision-making process for ARK Investment Management’s proposed spot BTC ETF.