No Spot Bitcoin ETF This Year?
The recent delay by the US Securities and Exchange Commission (SEC) in reviewing the ARK 21Shares Spot Bitcoin ETF application has raised concerns about the potential launch of any Spot Bitcoin ETF this year. Bloomberg Analyst James Seyffart questioned whether this decision signifies a complete halt to ETF approvals in 2023 and if other Spot Bitcoin ETF applications with October deadlines will also face delays.
Normally, the SEC makes such decisions just days before the deadline, but this early decision to extend the review period until January 10, 2024, is worrisome. Seyffart expressed less optimism in a subsequent tweet, suggesting that hopes for a Spot Bitcoin ETF launch this year might be lost.
It’s worth noting that Seyffart and another Bloomberg analyst had previously increased the likelihood of a Spot Bitcoin ETF launching this year to 75% following Grayscale’s victory against the SEC in August.
Plausible Reasons For The SEC’s Early Delay
There are two major theories behind the SEC’s early decision on the ARK 21Shares Spot Bitcoin ETF application. One theory suggests that it may be due to an anticipated government shutdown on October 1, which would impact SEC operations. However, since November 11 is still far off, this theory seems unlikely.
The second theory is that a letter sent by Congress to SEC Chair Gary Gensler may have influenced the decision. The letter urged the Commission to approve pending Spot Bitcoin ETFs based on the court’s ruling in the Grayscale case and criticized the SEC’s current stance as untenable.
Hot Take: Uncertainty Looms Over Spot Bitcoin ETF Approval
The SEC’s early delay of the ARK 21Shares Spot Bitcoin ETF application has cast doubt on the possibility of any Spot Bitcoin ETF launching this year. Analyst James Seyffart’s loss of optimism further adds to the uncertainty. While previous expectations were high following Grayscale’s legal victory, the recent decision has left the crypto community skeptical about the SEC’s stance on ETF approvals. Plausible reasons for the early delay range from potential government shutdown concerns to congressional pressure. As the SEC faces mounting pressure and deadlines approach, the fate of Spot Bitcoin ETFs remains uncertain.
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