Spot Bitcoin ETF Approval Faces Further Delays
The US Securities and Exchanges Commission (SEC) has once again delayed its decision on approving or denying spot Bitcoin exchange-traded fund (ETF) applications. This includes proposals made by Invesco, Bitwise, Valkyrie, and Blackrock. The deadline for approval or delay was originally set for mid-October, but the SEC has extended it. Other proposals from Fidelity, VanEck, and WisdomTree are still awaiting a decision as well.
Delays Linked to Imminent Government Shutdown
The recent batch of delay notices could be partly attributed to the upcoming government shutdown, which is expected to start on October 1. SEC Chair Gary Gensler stated that the shutdown would significantly reduce the agency’s workforce and slow down its operations.
Increasing Pressure for Approval
The pressure on the SEC to approve spot Bitcoin ETFs has intensified following Grayscale Investments’ victory over the SEC in court. A judge criticized the regulator’s decision to approve Bitcoin Futures ETFs while denying spot Bitcoin ETFs. Additionally, four members of the House Financial Services Committee urged the SEC to approve spot Bitcoin ETFs immediately.
Bipartisan Support for Approval
A bipartisan letter signed by U.S. Representatives Tom Emmer, Ritchie Torres, Mike Flood, and Wiley Nickel called for an end to discrimination against spot Bitcoin exchange-traded products. The letter emphasized that a regulated spot Bitcoin ETF would enhance investor protection and access to Bitcoin. It also urged Congress to ensure that the SEC approves investment products that meet congressional requirements.
SEC Still Considering Spot Bitcoin ETFs
Despite the mounting pressure, the SEC has not made a decision regarding spot Bitcoin ETFs. Chair Gary Gensler stated that it is still an active consideration and that the SEC has great respect for the courts.
Hot Take: Will the SEC Approve Spot Bitcoin ETFs?
The repeated delays in approving spot Bitcoin ETFs by the SEC have raised questions about when or if these ETFs will ever be approved. The pressure from lawmakers, court rulings, and growing public demand for Bitcoin investment options may eventually sway the SEC to give its approval. However, the SEC’s cautious approach and concerns about investor protection could continue to cause delays. As the cryptocurrency market evolves and regulatory frameworks adapt, the fate of spot Bitcoin ETFs remains uncertain. Investors and industry participants will have to wait for further updates from the SEC to determine whether this investment vehicle will become a reality.