SEC Delays Decision on Bitcoin ETFs
The United States Securities and Exchange Commission (SEC) has decided to postpone its decisions on several spot bitcoin exchange-traded funds (ETFs) applications. This comes as no surprise, as many experts had predicted these delays. The SEC has recently delayed decisions on the Ark 21 Shares and GlobalX applications until January, and now they have also delayed the applications of BlackRock, Invesco, Bitwise, and Valkyrie.
Industry analyst James Seyffart believes that the SEC will also push back the applications from VanEck, Fidelity, and WisdomTree. These delays are likely an attempt to avoid complications caused by an anticipated government shutdown.
“ANOTHER: @BlackRockjoins the party on spot #Bitcoin ETF delays. Three out of seven down.”
Hopes Remain for Applicants
Among the applicants, BlackRock’s proposal is highly anticipated due to their successful track record with the SEC. Seyffart reveals that BlackRock has received approvals from the SEC 575 times out of 576 attempts. Prior to the delay, the applicants had deadlines in October, but the SEC can extend its rulings until the end of the initial 240-day deadline.
The recent delays have also raised questions about whether or not the SEC plans to appeal the Grayscale court decision. The court ruled in favor of Grayscale and instructed the SEC to re-evaluate their application to convert the Grayscale Bitcoin Trust into an ETF.
Government Shutdown Concerns
These delays from the SEC come as a potential government shutdown looms in the United States starting from October 1st. The shutdown could significantly disrupt federal agencies, including financial regulators like the SEC. The shutdown is a result of the House and Senate’s failure to agree on funding bills for government operations.
Congress must pass 12 separate full-year funding bills by October 1st to avoid a complete shutdown. The SEC initially delayed spot Bitcoin ETF applications in August, and the next set of deadlines for applicants is in mid-January, with expectations of further delays. However, the SEC will have to make a final decision by March at the latest.
In August, Bloomberg ETF analyst Eric Balchunas increased the probability of a spot bitcoin ETF approval from 65% to 75% following the decisive ruling in the Grayscale vs. SEC case by the US Court of Appeals Circuit.
Hot Take: SEC Delays Bitcoin ETF Decisions Ahead of Expected Government Shutdown
The United States Securities and Exchange Commission (SEC) has decided to postpone its decisions on several spot bitcoin exchange-traded funds (ETFs) applications. This delay comes as no surprise, as industry experts had predicted it due to an anticipated government shutdown. The SEC has recently delayed decisions on various applications, including those from BlackRock, Invesco, Bitwise, and Valkyrie. The applicants are hopeful for approvals, especially BlackRock, which has a successful track record with the SEC. However, these delays have also raised questions about the SEC’s stance on the Grayscale court decision. With a potential government shutdown looming, concerns arise regarding the impact on financial regulators like the SEC. The deadline for a final decision is expected to be in March.
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