The Securities and Exchange Commission (SEC) of the United States has once more postponed making a judgment on a number of applications for spot Bitcoin exchange-traded funds (ETFs), increasing the uncertainty around the introduction of these financial products in the United States. Numerous well-known applicants, including BlackRock, Invesco, Bitwise, and Valkyrie, are impacted by this choice. The delays coincide with worries about a potential government shutdown and how it may affect the SEC’s operations.
The recent SEC delays have affected a number of significant players in the crypto investment space. In addition to BlackRock, Invesco, Bitwise, and Valkyrie, applications from other well-known firms like Fidelity, VanEck, and WisdomTree are also expected to be pushed back by the securities regulator, according to Bloomberg ETF analyst James Seyffart. These delays have come ahead of the anticipated second deadline date for many applicants, originally scheduled for October 16–19.
![SEC Delays Spot Bitcoin ETF Decisions Again image 229](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/09/image-229.png?resize=800%2C581&ssl=1)
![SEC Delays Spot Bitcoin ETF Decisions Again image 229](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/09/image-229.png?resize=800%2C581&ssl=1)
The timing of these delays is closely linked to concerns about a potential U.S. government shutdown, slated to occur on October 1st. Such a shutdown could disrupt the operations of the country’s financial regulators and other federal agencies, including the SEC. The U.S. Congress has yet to reach agreements on various funding bills necessary for government operations, and unless they pass 12 separate full-year funding bills by October 1, a government shutdown becomes a looming possibility.
Looking Ahead to Future Deadlines
While the recent delays may have pushed back the anticipated decision dates for these spot Bitcoin ETF applications, the third set of deadlines for the seven firms is set for around mid-January. However, there is still a possibility of further delays. The SEC is ultimately required to make a final decision on these ETFs by mid-March at the very latest.
ANOTHER: @BlackRock joins the party on spot #Bitcoin ETF delays. Three out of seven down. https://t.co/Cn9DSibqf8pic.twitter.com/eJTzDNInCi
— James Seyffart (@JSeyff) September 28, 2023
In late August, Bloomberg ETF analyst Eric Balchunas raised the probability of a spot Bitcoin ETF being approved by the end of 2023 from 65% to 75%. This increase in likelihood was attributed to the recent unanimity and decisiveness with which the U.S. Court of Appeals Circuit reached its decision in favor of Grayscale in a court battle with the SEC. Balchunas went further, stating that he believed the odds of approval could rise to 95% by the end of 2024.
These regulatory developments and the potential approval of a spot Bitcoin ETF remain closely watched by both the cryptocurrency industry and traditional financial markets, as they could significantly impact the accessibility of Bitcoin investment products to a broader range of investors.
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