SEC punts on Bitwise and Grayscale bitcoin ETF proposals

Bitcoin • December 17, 2021, 11:09AM EST
The Block

The Securities and Exchange Commission (SEC) has punted on two more spot bitcoin exchange-traded fund (ETF) proposals.

Two extension orders hit the docket Friday for NYSE Arca's proposed rule changes — one for the Bitwise Bitcoin ETP Trust proposal and another for the Grayscale Bitcoin Trust proposal.

The SEC will now take an additional 45 days to review both proposals, kicking their decision deadlines to February 1, 2022, and February 6, 2022, respectively. 

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"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 any comments received," read both orders. 

The SEC has already denied VanEck and WisdomTree's offerings this year, prompting Grayscale to send a letter to the commission claiming the agency was applying uneven standards to spot bitcoin proposals. That letter alleged that if the SEC failed to approve Grayscale's offering, it could be in violation of the Administrative Procedure Act. 

The SEC has historically punted on bitcoin ETF decisions, capitalizing on the full amount of time for a decision in its procedures. Should the SEC decide to take the full amount of time, it could kick Bitwise and Grayscale's decisions all the way to June and July of next year.

The next product that it will be required to make a decision on is Kryptoin, with a deadline of Dec. 24.

About Author

Aislinn Keely is a reporter on The Block's policy team holding down the legal beat. She covers court decisions, bankruptcies, regulatory actions and other key moments in the legal sphere, putting them in context for the wider crypto industry. Before The Block, she lent her voice to the NPR affiliate WFUV and helmed Fordham University's student newspaper. Send tips or thoughts on all things policy and legal to [email protected] or follow her on Twitter for updates @AislinnKeely.