U.S. Securities Regulator Delays Verdicts on Bitcoin ETF Applications
The U.S. Securities and Exchange Commission (SEC) has once again postponed its decisions on several applications for spot bitcoin exchange-traded funds (ETFs). This includes the high-profile application from investment giant Blackrock, as well as those from Valkyrie, Bitwise, and Invesco. The delays come ahead of a potential government shutdown that would impact the SEC.
Uncertainty Surrounds Spot Bitcoin ETFs in the U.S.
The SEC’s latest decision to delay verdicts on spot bitcoin ETF applications has left the future of these proposals uncertain. Not only did they postpone the decisions on Blackrock’s application, but they also pushed back the verdicts on applications from Valkyrie, Bitwise, and Invesco. Earlier this week, the SEC also postponed its decision on Ark 21shares and Global X spot bitcoin ETFs. The SEC’s actions are influenced by the potential government shutdown.
Deadline Approaching for Other ETF Applications
The SEC’s delay in making decisions on spot bitcoin ETFs follows their deferral of judgment on seven other funds at the end of August. This includes applications from Wisdomtree, Vaneck, Fidelity, and others. Some of these applications have deadlines in the second half of October. Franklin Templeton recently joined the race to launch a bitcoin ETF as well.
Possible Government Shutdown Causes Delay
Analyst James Seyffart from Bloomberg suggests that the early delays are due to a potential partial government shutdown. SEC Chair Gary Gensler warned lawmakers about this possibility, explaining that it would leave the SEC with minimal staff. If Congress fails to agree on funding, federal employees at various government agencies would have to be furloughed. Seyffart also predicts that applications from Vaneck, Wisdomtree, and Fidelity will face delays.
Potential Further Delays and Appeals
The SEC may continue to delay its decisions on bitcoin ETFs into early next year. Additionally, they may attempt to appeal a court decision in favor of Grayscale from August. The court ruled that the SEC’s denial of Grayscale’s Bitcoin Trust (GBTC) conversion to a spot bitcoin ETF was “arbitrary and capricious.” This ruling gave hope for the approval of bitcoin ETFs in the U.S.
Hot Take: Uncertainty Persists for Bitcoin ETFs in the U.S.
The SEC’s repeated delays in making decisions on spot bitcoin ETFs have created ongoing uncertainty for these investment vehicles in the United States. With applications from major players like Blackrock, Valkyrie, and Bitwise still pending, investors are eagerly awaiting regulatory clarity. The potential government shutdown adds another layer of complexity to the situation, as it could further postpone the SEC’s verdicts. As the SEC continues to grapple with the approval of bitcoin ETFs, the future of these investment products remains uncertain in the U.S. market.
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