FINAL DEADLINE SENT BY BITWISE BITCOIN ETP AND BY GRAYSCALE BITCOIN TRUST TO SEC FOR DECISION
The two applications currently on investor radar are the Bitwise Bitcoin ETP Trust, with a June 29 deadline, and the Grayscale Bitcoin Trust (GBTC), which has a deadline of July 6. (Grayscale's parent company is Digital Currency Group, which also owns CoinDesk as a subsidiary. independent investors.) Both investment issuers have had their current applications delayed several times by the SEC and the coming days represent a final deadline for the SEC to make a decision.
Bloomberg Intelligence analyst James Seyffart, who closely monitors the ETF sector, told CoinDesk that it considers authorization of any application to be "extremely unlikely." Seyffart said the SEC was clear about what it wanted to see before giving green light to the bitcoin product.
"The [SEC] does not approve the location of the bitcoin ETF until the 'market of significant size' has shared monitoring agreements or is regulated by the interests of the SEC or CFTC," Seyffart said.
Therefore, until "bitcoin exchange or bitcoin trading is likely to be under the auspices of the SEC and / or CFTC, the SEC will not approve the ETF position," he said.
Similar thoughts were shared by Nate Geraci, president of The ETF Store, an investment consulting firm focused on ETFs. "Strong market speculation that the SEC will not approve these ETFs," Geraci told CoinDesk, adding that SEC chairman Gary Gensler had not made any changes to communications about these permits.
"Chairman Gensler has been sending a message that until the SEC has some degree of direct control of crypto trading, the location of the bitcoin ETF will not be allowed," Geraci said.
To be sure, the recent reduction in discount between GBTC price and bitcoin price has led some to speculate that there is hope in the market for authorization Some viewers anticipate approval at some point, despite recent turmoil from firms like Celsius. and BlockFi could cause the SEC to slow down any authorization in the near future.
"It seems that it is no longer a matter of 'if' but just a 'when' the SEC will finally approve the local ETF," said Bradley Duke, CEO of ETF-based ETF-based ETF. "But the current turmoil in the crypto market, including the collapse of UST and Terra Luna and the plight of major crypto financial companies such as Celsius and BlockFi, could all contribute to giving the SEC a reason to delay the opening of flood gates."
And the dragging process may not be the best sign in the industry, according to Oppenheimer equity research analyst Owen Lau.
"It seems to me that the longer it takes, the industry tends to move away from the SEC, and the harder it is to get approval," Lau told CoinDesk. "The possibility that it may take too long to get local ETF approval, or even be approved by the SEC, is growing."
Although Bitwise Chief Investment Officer Matt Hougan could not comment on his company's specific application with the SEC, he is hopeful that the US market will eventually see the bitcoin ETF as a place.
"In general, I think it's okay to look at the SEC's recent actions and see the ongoing progress in their consolidation with the bitcoin space," Hougan told CoinDesk.
"We now have the ETF of the 1940 Act bitcoin futures, the ETF of the 1933 Act bitcoin and the future ETF of the opposite bitcoin," notes Hougan, referring to the previous authorization of bitcoin related ETFs. Each represents the growing luxury of the bitcoin market.
Ultimately, the location of the bitcoin ETF will reduce costs and make the way American investors access the bitcoin market more secure, Hougan argued.
Grayscale, on the other hand, has strongly insisted on seeking accreditation. Some of its efforts have included marketing to get members of the public to express their support for the SEC, the May meeting with the SEC and the strengthening of its legal team by including Donald B. Verrilli Jr., a former member of the organization. Attorney General in the Obama Administration.
GBTC, which owns approximately $ 13 billion in assets under management, is currently trading at a 29% discount on NAV.
Earlier this week, Grayscale CEO Michael Sonnenshein took to Twitter to argue that the recent launch of a counterfeit bitcoin ETF could be a good sign for the industry and the prospects for the end of the bitcoin ETF.