Bitcoin spot ETF applications from institutions like BlackRock are under review this weekend! What is the key to getting SEC approval?

Asset management giant Blackrock announced in July this year that it applied for a Bitcoin spot ETF, attracting many institutions to join the application queue. On September 1st and 2nd, the SEC will need to respond to these institutional ETF applications. Whether it will be approved remains uncertain. Bloomberg analysts believe that more time is needed as they await the outcome of the litigation between Grayscale and the SEC.

SEC to Respond to Multiple Bitcoin Spot ETFs in September

According to a report by Bloomberg, the U.S. Securities and Exchange Commission (SEC) is expected to respond to the applications for Bitcoin spot exchange-traded funds (ETFs) from financial institutions BlackRock, Bitwise, VanEck, WisdomTree, and Invesco before the Labor Day weekend in the United States.

Among these, Bitwise has the earliest deadline, with the SEC required to respond by Friday, 9/1, whether it be a rejection, approval, or delay. The applications from the other institutions will need a response by 9/2.

Note: Labor Day in the U.S. falls on the first Monday of September, which is on 9/4 this year.

Prior to this, the results of the applications for Bitcoin spot ETFs submitted by Ark and 21Shares were expected to be announced in early August; however, they have been delayed by the SEC.

Event report: More Waiting for Bitcoin Spot ETFs! SEC Extends Ark ETF Review, Seeks Public Opinion

Approval of Grayscale Bitcoin Spot ETF is Key

Will the SEC make an unexpected decision this time, unlike in the past?

The industry research director of data analytics company VettaFi gave a disappointing response, stating that a decision on a Grayscale lawsuit needs to be seen first before the approval of a Bitcoin spot ETF. Otherwise, approval of an Ethereum futures ETF may come before a Bitcoin spot ETF.

In June of last year, Grayscale's transformation of GBTC into a Bitcoin spot ETF was rejected, leading Grayscale to file a lawsuit, with a court expected to make a ruling as early as the third quarter.

Event report: GBTC's Transformation to Spot ETF Rejected Again! Grayscale Files Lawsuit with SEC, Submits Reconsideration Application

Additionally, there was a surge in applications for Ethereum futures ETFs in early August, with the number of applications reaching 16 so far. Among them, Valkyrie and Volatility Shares are expected to undergo the quickest review in early October.

Event report: Crypto ETF Application Surge, 16 Ethereum Futures ETFs Await Approval, October Becomes Crucial

Regarding this matter, senior litigation analyst Elliott Stein from Bloomberg Industry Research also expressed a similar view, stating, "With the SEC's ability to delay its decision, I think they will continue to postpone until there is a court ruling in the Grayscale case."

However, Elliott Stein also believes that there is a 70% chance of Grayscale winning, and the SEC will need to revoke its rejection decision.