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

Following an application with the SEC, BlackRock, which manages more than $8.5 trillion in assets, had a decision on its iShares Bitcoin Trust delayed.

In June, BlackRock filed an application for a BTC-backed ETF, with Coinbase named as the fund's Bitcoin custodian and the Bank of New York Mellon handling its fiat accounts.

The value of the shares, according to BlackRock's filing, is in removing "obstacles represented by the complexities and operational burdens involved in a direct investment in Bitcoin."

The ETF postponement came after cryptocurrency asset management Grayscale Investments petitioned the SEC to reverse an August 29 decision that refused the listing of its over-the-counter Grayscale Bitcoin Trust (GBTC).

Many in the cryptocurrency community predicted that the introduction of a spot Bitcoin ETF supported by BlackRock, the world's largest asset manager, would be a positive milestone for adoption.

The extension gives the SEC another 45 days after publication in the Federal Register to approve, refuse, or postpone the BlackRock application, putting the next deadline on Oct. 17.

Sources:

https://cointelegraph.com/news/blackrock-bitcoin-etf-application-delayed-sec

https://www.coindesk.com/policy/2023/08/31/after-grayscale-victory-sec-kicks-the-can-on-latest-bitcoin-etf-applications/

https://www.sec.gov/files/rules/sro/nasdaq/2023/34-98267.pdf