SEC Delays Decision On Four Spot Bitcoin ETF Proposals, Including BlackRock, As Government Shutdown Looms

The U.S. Securities and Exchange Commission punted its decision on four applications for spot Bitcoin exchange-traded funds (ETFs) presently under consideration ahead of an upcoming government shutdown.

SEC Again Postpones Spot ETF Filings

The SEC on September 28 said it is instituting additional proceedings to decide whether proposed spot bitcoin ETFs from BlackRock along with Bitwise, Invesco Galaxy Digital, and Valkyrie should be approved or denied.

This marks the second time the SEC has extended the deadline for the BlackRock, Invesco, Galaxy Digital, and Valkyrie applications within a month.

The latest delays in decisions came two weeks earlier than the anticipated second interim deadline for the filers, who had been expecting the agency’s response between October 16 to 19.

According to Bloomberg ETF analyst James Seyffart, the preemptive delays are connected to the expected U.S. government shutdown this weekend.  Government funding ceases on Sunday at 12:01 a.m., disrupting several federal agencies, including the SEC.

Notably, there are three more ETFs with deadlines from VanEck, WisdomTree, and Fidelity Investments in the third week of October.

Seyffart believes these filings are likely to be hit with similar delays before the government shutdown.

Previous Delays

The SEC first postponed a pile of spot Bitcoin ETFs in late August for Fidelity’s Wise Origin Bitcoin Trust, the VanEck Bitcoin Trust, and the WisdomTree Bitcoin Trust when the first deadline was imminent.

The SEC also earlier this week deferred a decision on the proposed ARK 21Shares Bitcoin ETF to January 10.

Back in August, Bloomberg ETF analysts increased the chances of a spot Bitcoin ETF being approved by the end of 2023 to 75% (from an earlier 65%). They cited the U.S. Court of Appeals’ ruling that the regulator must review its rejection of Grayscale’s attempt to transform the Grayscale Bitcoin Trust (GBTC) into an ETF as the key reason behind the odds rising.

Nevertheless, the Bloomberg strategists recently observed that the delays “put the hammer down” on hopes of a spot crypto ETF being approved before the end of 2023.

Source: Read Full Article