US SEC Postpones Decision on Bitcoin ETFs
The United States Securities and Exchange Commission (SEC) has once again delayed its decision on several proposals for spot Bitcoin exchange-traded funds (ETFs). This includes applications from financial giants BlackRock and Invesco, as well as the cryptocurrency-focused Bitwise.
These delays have come earlier than expected, surprising many applicants who had been anticipating responses from the securities regulator between October 16 and 19. The timing of these delays is closely tied to the looming threat of a U.S. government shutdown, which could potentially occur on October 1 if Congress fails to agree on various funding bills for government operations.
Congress must pass 12 separate full-year funding bills by the end of September to avert this shutdown. The potential shutdown would disrupt the functioning of various federal agencies, including financial regulators like the SEC.
US SEC Continues to Delay Decisions on Bitcoin ETFs
This isn’t the first time the SEC has pushed back decisions on Bitcoin ETFs. A previous round of delays occurred in late August, just as the first deadline approached.
The third set of deadlines for these seven firms is scheduled for around mid-January, but there’s a possibility that these deadlines could also be extended. The SEC must reach a final decision by mid-March at the latest.
Optimism Around Bitcoin Spot ETF Approval Grows
The prospects of a Bitcoin ETF approval have gained traction in recent months. Bloomberg ETF analyst Eric Balchunas estimated a 75% probability of a spot Bitcoin ETF approval by the end of 2023, up from an earlier 65%. This optimism was fueled by the U.S. Court of Appeals Circuit’s ruling in favor of Grayscale over the SEC, suggesting a more favorable environment for such approvals. Balchunas has even raised the odds to 95% by the end of 2024.
However, the US SEC has not approved any Bitcoin spot ETF so far, citing lack of clarity and investor protection.
Hot Take: SEC Delays Bitcoin ETF Decisions Amidst Government Shutdown Threat
The SEC’s decision to postpone the approval of several Bitcoin exchange-traded funds (ETFs) has left many financial giants and cryptocurrency-focused firms waiting in uncertainty. These delays have come earlier than expected, possibly due to the potential government shutdown if Congress fails to agree on funding bills. The SEC has previously delayed decisions on Bitcoin ETFs, and there is a possibility that the upcoming deadlines could also be extended. Despite this, optimism around Bitcoin spot ETF approval continues to grow, with analysts predicting a higher probability of approval in the coming years. However, for now, the SEC remains cautious about approving any Bitcoin spot ETFs due to concerns about clarity and investor protection.
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