SEC decision on Bitcoin ETFs won’t leave out Wall Street giants
The Securities and Exchange Commission’s (SEC) delay in deciding whether to approve a spot Bitcoin (BTC) exchange-traded fund (ETF) in the United States is fueling expectations that a final verdict will come in a batch that includes key players on Wall Street, including BlackRock and Fidelity.
“There’s a tremendous amount of pressure on the SEC to approve a number of these ETFs, particularly because the approved Futures backed products are lagging spot performance substantially, harming investors,” markets veteran and co-founder of CoinRoutes Dave Weisberger told Cointelegraph, adding that all pending applications will likely be included in a final decision.
The SEC is analyzing a total of eight applications for a spot Bitcoin ETF, following past delays and denials of the crypto product in recent years. Companies up for a decision are Ark and 21Shares, Bitwise, BlackRock, VanEck, WisdomTree, Invesco and Galaxy Digital, Fidelity, and Valkyrie. Together, the firms manage over $15 trillion in global assets.
On Aug. 11, the U.S. markets regulator opened a 21-day comment period for the ARK 21Shares Bitcoin ETF. As per the filing, the SEC is seeking answers on whether ARK 21Shares’ proposal is designed to prevent fraudulent and manipulative acts and practices, as well as whether the Bitcoin market is susceptible to manipulation.
Furthermore, the regulator raised concerns about Coinbase’s surveillance-sharing agreement, asking commenters to examine whether Coinbase’s participation in the ETFs surveillance would, in fact, help to detect, investigate, and deter fraud and manipulation in Bitcoin’s price.
“The SEC’s main concern about spot crypto ETFs is about the potential market manipulation by a big whale. Theoretically, it can happen if the SEC approves the ETFs of one or two investment funds. But if it decides to register all 8 ETFs, it will sharply mitigate the probability of manipulation, because these firms will be able to trade with each other frequently, taking opposite sides,” explained Ruslan Lienkha, chief of markets at YouHodler.
The delay had a lower impact on Bitcoin’s price, hovering around the $30,000-mark at the time of writing. According to Mauricio Di Bartolomeo, co-founder of crypto lending platform Ledn, traders and investors are “expecting them [the SEC] to take all the time they could,” with today’s decision having a low impact “in terms of market expectations.”
The SEC still has two deadlines before a final decision is made. The third deadline for ARK 21Shares application is due by January 202. Valkyrie has the latest application in line, with two upcoming deadlines in January and March next year.
The BTC ETF outcome could reshape the crypto investment landscape. According to Lienkha, an approval could potentially bring over $70 billion in liquidity to the Bitcoin market. “The opportunity to invest in Bitcoin through ETFs will give regular investors more confidence, as with professional help, they don’t have to dive into all the technical details and analyze potential risks by themselves,” he noted.
Magazine: Should you ‘orange pill’ children? The case for Bitcoin kids books
The boss of Unite, Labour’s biggest union funder, has threatened to break its link with the party unless it changes direction.
Sharon Graham, general secretary of the union, told Sky News that, on the eve of a crucial party conference for the prime minister, Unite‘s support for Labour was hanging in the balance.
She told Sunday Morning With Trevor Phillips: “My members, whether it’s public sector workers all the way through to defence, are asking, ‘What is happening here?’
Sharon Graham has been a long-time critic of Sir Keir Starmer. Pic: PA
“Now when that question cannot be answered, when we’re effectively saying, ‘Look, actually we cannot answer why we’re still affiliated’, then absolutely I think our members will choose to disaffiliate and that time is getting close.”
Asked when that decision might be made, she cited the budget, on 26 November, as “an absolutely critical point of us knowing whether direction is going to change”.
Ms Graham, who became leader in 2021, has been a long-time critic of Sir Keir Starmer‘s agenda, accusing him of lacking vision.
The union has campaigned against his decision to cut winter fuel allowance for pensioners – which was later reversed – and has called for more taxes on the wealthy.
But the firm threat to disaffiliate, and a timetable, highlights the acute trouble Sir Keir faces on multiple fronts, after a rocky few months which have seen his popularity plummet in the polls and his administration hit by resignations and scandals.
There is now open discussion about his leadership, with Andy Burnham, the mayor of Greater Manchester, claiming he’s been urged by MPs to mount a challenge.
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Burnham: Labour leadership ‘not up to me’
Unite has more than a million members, the second-largest union affiliated to Labour. It donates £1.5m a year from its membership fees to the party.
The union did not make an additional donation to Labour at the last election – as it has done previously – but was the biggest donor to its individual MPs and candidates. It has donated millions to the party in the past.
Any decision to disaffiliate would need to be made at a Unite rules conference; of which the next is scheduled for 2027, but there is the option to convene emergency conferences earlier.
Just 15 months into Sir Keir’s premiership, in which he has promised to champion workers’ rights, Ms Graham’s comments are likely to anger the Labour leadership.
Sir Keir Starmer has seen his popularity plummet in the polls in recent months. Pic: AP
Read more: Now is moment of ‘maximum danger’ for Starmer, Harriet Harman warns
Unite, earlier this year, voted to suspend former deputy prime minister Angela Rayner of her union membership because of the government’s handling of a long-running bin strike in Birmingham.
Ms Graham has described the left-wing party being launched by Jeremy Corbyn as a “sideshow” and has brushed off speculation of a leadership challenge by Mr Burnham.
This summer, she said if Unite dropped support from Labour it would “focus on building a strong, independent workers’ union that was the true, authentic voice for workers”.
The annual Labour Party conference kicks off in Liverpool from Sunday.
As a union affiliated with Labour, Unite has seats on the party’s ruling national executive committee and can send delegates to its annual conference.
Watch the full interview with Sharon Graham on Sunday Morning With Trevor Phillips from 8.30am on Sky News
The UK government talks about becoming a “leading global crypto hub,” but slow policy development and fragmented regulation risk losing ground to competitors.
Vitalik Buterin has opposed the EU’s proposed Chat Control law, warning it undermines digital privacy and creates surveillance backdoors.
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