HomeFinance NewsSEC delays decision on spot Bitcoin ETF for BlackRock, Invesco, and Bitwise.

SEC delays decision on spot Bitcoin ETF for BlackRock, Invesco, and Bitwise.

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The United States Securities and Exchange Commission (SEC) has postponed its decision on multiple proposals for spot Bitcoin exchange-traded funds (ETFs), including BlackRock, ahead of a potential government shutdown. Other Bitcoin ETF applications from Invesco, Bitwise, and Valkyrie were also delayed by the SEC. The delay was expected due to the possibility of a government shutdown on October 1, as Congress has not agreed on funding bills to support government operations. The SEC previously delayed a group of spot Bitcoin ETF applicants in early September. The next set of deadlines for the seven firms is in mid-January, and those may also be delayed. A final decision by the SEC is expected by mid-March at the latest.

The decision to delay the Bitcoin ETF proposals is related to the potential government shutdown, which has put the short-term future of the US government in jeopardy. In order to avoid a shutdown, Congress needs to pass 12 separate full-year funding bills by October 1. The SEC’s decision to delay the ETF applications came two weeks earlier than the scheduled second deadline date. This delay is causing uncertainty for many applicants who were expecting a response from the securities regulator by October 16-19. The SEC will have to make a final decision by mid-March at the latest.

Bloomberg ETF analyst James Seyffart predicted the delays due to the potential government shutdown. He also expects the applications from Fidelity, VanEck, and WidsomTree to be pushed back by the SEC. In late August, another Bloomberg ETF analyst, Eric Balchunas, increased the probability of a spot Bitcoin ETF being approved by the end of 2023 to 75%. This increase was attributed to the decisive court win by Grayscale over the SEC. Balchunas further raised the odds to 95% by the end of 2024. The delays in the SEC’s decision on Bitcoin ETF proposals are likely to prolong the uncertainty in the cryptocurrency market.

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