The U.S. Securities and Exchange Commission Delays Decisions on Bitcoin ETFs
The U.S. Securities and Exchange Commission (SEC) has postponed its decision on several proposed spot Bitcoin exchange-traded funds (ETFs) due to the possibility of a government shutdown. VanEck, WisdomTree, Fidelity, BlackRock, Invesco, Valkyrie, and Bitwise all had their applications delayed on September 28th. The SEC stated that it would conduct further proceedings to determine whether the ETFs should be approved or disapproved. Commentators have been invited to submit written data, views, and arguments within 21 days, followed by a 35-day rebuttal period. This suggests that the approval process may take several more months.
Uncertainty Surrounding Government Shutdown
The delay in approving the Bitcoin ETFs comes at a time when the U.S. House of Representatives and the Senate are facing an impasse over a short-term bill that lacks funding for Ukraine. If an agreement is not reached by 12:01 a.m. ET on Sunday, the U.S. government will officially shut down. This uncertainty adds another layer of complexity to the already prolonged approval process for Bitcoin ETFs.
Hot Take: Further Delay Impacts Crypto Market
The SEC’s decision to delay multiple Bitcoin ETF approvals has significant implications for the crypto market. It prolongs the wait for institutional investors looking to gain exposure to Bitcoin through regulated channels. The additional proceedings and extended timeline indicate that the SEC remains cautious about granting approval for these ETFs. As a result, market participants will have to wait longer for clarity on this matter, potentially dampening market sentiment in the short term. The uncertainty surrounding the possible government shutdown further exacerbates the situation, creating more challenges for the crypto industry.
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