BlackRock’s Bitcoin ETF the 7th application delayed by SEC on Aug. 31

The United States Securities and Exchange Commission (SEC) has delayed an application for a Bitcoin (BTC) exchange-traded fund from global asset manager BlackRock.

BlackRock, a firm with more than $8.5 trillion in assets under management, had a decision on its iShares Bitcoin Trust delayed following an application with the SEC. In June, BlackRock lodged an application for a BTC-backed ETF with Coinbase listed as the planned custodian of the fund’s Bitcoin holdings and the Bank of New York Mellon in charge of its fiat accounts.

BlackRock’s filing outlined the value of the shares in removing “obstacles represented by the complexities and operational burdens involved in a direct investment in Bitcoin”. The ETF delay came after cryptocurrency asset manager Grayscale Investments petitioned to have an SEC decision overturned that had originally denied the listing of its over-the-counter Grayscale Bitcoin Trust (GBTC) on Aug. 29.

Related: Grayscale wins the court battle, but what does this mean for a spot Bitcoin ETF?

Many in the crypto space suggested the approval of a spot Bitcoin ETF backed by BlackRock — as the world’s biggest asset manager — would signal a positive development for adoption. The delay, which allows the SEC another 45 days following publication in the Federal Register to approve, deny, or delay the BlackRock application again, puts the next deadline at Oct. 17.

A swathe of Bitcoin ETFs were delayed by the SEC on Aug. 31. The commission designated a longer period to review applications from WisdomTree, Invesco Galaxy, Valkyrie, Bitwise, VanEck and Fidelity.

Magazine: SEC calls ETF filings inadequate, Binance loses euro partner and other news: Hodler’s Digest, June 25 – July 1