The SEC Delays Decision on Spot Bitcoin ETF Applications
The US Securities and Exchange Commission (SEC) has announced that it is postponing its decision on two spot Bitcoin exchange-traded fund (ETF) applications. The application by ARK Invest and 21Shares has been delayed until January 2024. This delay has led to speculation that other companies’ filings for spot Bitcoin ETFs may also face delays, meaning investors will have to wait until next year for approval.
ARK 21Shares Bitcoin ETF Postponed to 2024
The SEC has extended the deadline for its decision on the ARK 21Shares spot Bitcoin ETF filing by another 60 days. The final verdict on the proposal is now scheduled for January 10, 2024. Previously, the SEC had postponed its response to seek new public comments, giving itself until November 11, which is 180 days after the proposal was first published in the Federal Register. The SEC has also delayed its decision on the Global X Bitcoin Trust until November 21, 2023.
Speculation of Government Shutdown
Bloomberg ETF analyst James Seyffart suggests that the SEC’s early extensions of its verdicts on these proposals may be due to a potential US government shutdown. Seyffart notes that these extensions occurred earlier than usual.
Calls for Immediate Approval of Spot BTC ETFs
Four members of Congress have written a letter to SEC Chairman Gary Gensler urging him to approve spot Bitcoin ETF listings immediately. They argue that a recent court ruling involving Grayscale and the SEC means there are no longer valid reasons for the regulator to reject spot BTC ETF filings.
Potential Delays and Slim Chances in 2023
Other spot Bitcoin ETF applications from companies like BlackRock, Valkyrie, Invesco, Fidelity, VanEck, Bitwise, and WisdomTree have also been extended and are due in October 2023. However, Seyffart speculates that there may be further delays, making the chances of an approved spot Bitcoin ETF in the US even slimmer in 2023.
Hot Take: Uncertainty Continues for Spot Bitcoin ETFs
The SEC’s decision to delay its verdict on spot Bitcoin ETF applications has created more uncertainty for investors and stakeholders. With the ARK 21Shares Bitcoin ETF postponed until January 2024 and potential delays for other filings, the wait for a spot Bitcoin ETF approval in the US could stretch into next year. Despite calls from Congress members for immediate approval, it remains to be seen when the SEC will grant its final decisions on these applications. The future of spot Bitcoin ETFs in the US remains uncertain.
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