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According to Bloomberg Intelligence, the highly anticipated launch of a spot Bitcoin exchange-traded fund (ETF) in the United States could occur just before Labor Day on September 4.
The firm stated that the US Securities and Exchange Commission (SEC) is expected to respond to several applications from BlackRock, Bitwise, WisdomTree, VanEck, and Invesco in the coming days. The agency has the option to approve, reject, or delay the filings.
More Clarity Before the Week’s End
Bloomberg Intelligence noted that Bitwise’s application will be the first reviewed by the SEC, with an announcement expected on Friday, September 1. A decision on the other four filings, submitted by BlackRock, Invesco, WisdomTree, and VanEck, is due on Saturday, September 2.
The SEC’s stance has so far been discouraging for companies seeking to introduce such financial products in the US. Last year, the regulator rejected Grayscale’s bid to convert its Bitcoin trust into an ETF and delayed its decision on the joint spot Bitcoin ETF filing by ARK Investment Management and 21Shares.
One observer pessimistic about the regulator approving the long-awaited product this week is Roxanna Islam, associate director of research and head of sector and industry research at VettaFi:
“We can expect to see more delays from the SEC, especially after they already delayed their decision earlier this month on ARK’s spot-Bitcoin ETF filing. We need to see a decision from the SEC on Grayscale’s lawsuit first — otherwise, we might see them approve Ether-futures ETF filings before they approve any spot-Bitcoin ETF filings.”
While a green light from the Commission seemed like a mirage in recent years, the odds appeared to shift when BlackRock joined the race.
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The involvement of the financial behemoth, which has seen only one of its 576 ETFs rejected by the SEC in the past, infused optimism into the crypto space, prompting many to believe that a spot Bitcoin ETF will finally launch in the world’s largest economy.
Why BlackRock’s Application Could Be Successful?
There are several reasons why BlackRock’s filing could receive the SEC’s approval, aside from its strong track record with the agency. A popular X (formerly Twitter) user named “Seth” highlighted key points that could play a role.
First, Seth noted that the US government and the Federal Reserve place high trust in BlackRock, having asked the asset manager to help draw up a rescue plan during the 2008 financial crisis.
Another factor is the shift in stance by the company’s CEO, Larry Fink, who called Bitcoin an “index of money laundering” in 2017 but has recently aligned his views with those who support the asset.
Seth pointed out that BlackRock already has experience in the field, having previously launched a private Bitcoin ETF for institutional investors.
The existence of spot Bitcoin ETFs in other regions, such as Canada and Europe, along with a surge of applications from other asset managers including Vanguard and Fidelity, are also factors worth observing, the X user concluded.
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