The U.S. Securities and Exchange Commission has postponed its decision on several proposals for spot Bitcoin (BTC) exchange-traded funds (ETFs), including BlackRock, ahead of an expected government shutdown.
Spot Bitcoin ETF applications from Invesco, Bitwise and Valkyrie have also been delayed by the SEC, according to separate filings dated September 28, while Bloomberg ETF analyst James Seyffart expects applications from Fidelity, VanEck and WidsomTree to also be delayed by the securities are pushed back regulator.
OTHER: @BlackRock joins the party as #Bitcoin ETF delays occur. Three out of seven mistakes. https://t.co/Cn9DSibqf8 pic.twitter.com/eJTzDNInCi
— James Seyffart (@JSeyff) September 28, 2023
The latest delays came two weeks before the scheduled second deadline for many applicants who had expected to hear from the securities regulator by Oct. 16 and Oct. 19.
Seyffart said the timing of the delays is related to the expected U.S. government “shutdown,” which may take place on Oct. 1 and disrupt the country’s financial regulators and other federal agencies.
Both chambers of Congress — the House and Senate — have failed to agree on separate funding bills to fund government operations, and Congress must pass 12 separate full-year funding bills by Oct. 1 to avoid a shutdown.
The SEC delayed a number of spot Bitcoin ETF applicants in late August as the first deadline approached.
The third deadline for the seven companies now expires around mid-January and could also be delayed. The SEC must make a final decision by mid-March at the latest.
Related: Bitcoin ETFs or not, don’t expect a “sexy” crypto bull run – Concordium founder
In late August, Bloomberg ETF analyst Eric Balchunas estimated that the likelihood of a spot Bitcoin ETF being approved by the end of 2023 had increased to 75% (from 65% previously).
He cited the unanimity and determination with which the US Court of Appeals reached its decision on Grayscale’s court victory against the SEC as the main reason for the increasing chances.
Balchunas further increased this rate to 95% by the end of 2024.
Magazine: How to Protect Your Crypto in a Volatile Market – Bitcoin OGs and Experts Speak Out
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers