SEC Postpones Decision on Spot Bitcoin ETFs for BlackRock, Invesco, and Bitwise, New Expected Decision Date Set for October 16–19

By 0xK2 09/29/23 12:51 AM

In a move that has sent shockwaves through the cryptocurrency and investment communities, the United States Securities and Exchange Commission (SEC) has opted to delay its decision on a slew of proposals for spot Bitcoin exchange-traded funds (ETFs). This decision has left not only market enthusiasts but also institutional giants like BlackRock in suspense. The SEC’s action comes just ahead of the anticipated government shutdown, raising concerns about regulatory processes in the cryptocurrency space.

The delayed applications for spot Bitcoin ETFs belong to prominent players such as Invesco, Bitwise, and Valkyrie, according to separate filings made on September 28. Bloomberg ETF analyst James Seyffart suggests that this delay could extend to other notable applicants, including Fidelity, VanEck, and WisdomTree. Many in the industry had been preparing for the SEC’s decision, which was initially expected to be delivered between October 16 and 19.

ANOTHER: @BlackRock joins the party on spot #Bitcoin ETF delays. Three out of seven down. https://t.co/Cn9DSibqf8 pic.twitter.com/eJTzDNInCi

— James Seyffart (@JSeyff) September 28, 2023

The unexpected timing of these delays is closely tied to the looming possibility of a U.S. government shutdown, slated to occur on October 1. Such a shutdown would disrupt the functioning of various federal agencies, including the SEC and other financial regulators. It appears that the SEC is taking precautionary measures to ensure that its operations remain unaffected during this potentially turbulent period.

This means we are expecting all #Bitcoin ETF’s squared in Magenta to get their Delay orders today or tomorrow. (these are early due to the govt shutdown) https://t.co/DlXMEKhOAP pic.twitter.com/yCmeSO0p2z

— James Seyffart (@JSeyff) September 28, 2023

The prospects for a spot Bitcoin ETF have been the subject of much speculation and debate. In late August, Bloomberg ETF analyst Eric Balchunas had estimated that the likelihood of the SEC approving a spot Bitcoin ETF by the end of 2023 had risen to 75%, up from an earlier estimate of 65%. Balchunas has since boosted this estimate to a staggering 95% by the end of 2024. These revised odds reflect the growing acceptance and interest in cryptocurrencies among both retail and institutional investors.

A spot Bitcoin ETF holds the potential to revolutionize the cryptocurrency market, offering investors a more accessible and regulated means of exposure to Bitcoin’s price movements. It would also mark a significant step towards mainstream adoption of digital assets, as traditional financial institutions and investors continue to embrace the burgeoning crypto space.

Despite the delays, the cryptocurrency community remains optimistic about the eventual approval of spot Bitcoin ETFs. The industry continues to evolve and mature, and regulatory bodies like the SEC are undoubtedly taking a cautious approach to ensure that the necessary safeguards are in place. As investors anxiously await the SEC’s final decisions, one thing is clear: the cryptocurrency market is rapidly becoming an integral part of the global financial landscape, and the arrival of spot Bitcoin ETFs could be a game-changer for all stakeholders involved.

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