As the potential for a government shutdown looms, the U.S. Securities and Exchange Commission (SEC) has postponed decisions on four pending spot Bitcoin ETF proposals. The proposals, submitted by industry giants like BlackRock, Bitwise, Invesco Galaxy Digital, and Valkyrie, are left hanging in the balance.
The Continuous Postponements of Spot Bitcoin ETF Proposals
On September 28, the SEC announced its decision to initiate further proceedings to determine the fate of the proposed spot Bitcoin ETFs from BlackRock, Bitwise, Invesco Galaxy Digital, and Valkyrie. This marks the second postponement within a month for these applications, a move that came two weeks earlier than the expected second interim deadline. The applicants had anticipated the agency’s response between October 16 and 19.
According to James Seyffart, a Bloomberg ETF analyst, these premature delays are likely tied to the impending U.S. government shutdown. With government funding set to cease on Sunday at 12:01 a.m., several federal agencies, including the SEC, are expected to face disruptions.
Other ETFs on the Waiting List
Besides the four ETF proposals already mentioned, three more ETFs from VanEck, WisdomTree, and Fidelity Investments are set to reach their deadlines in the third week of October. Seyffart predicts that these filings will likely experience similar delays due to the government shutdown.
A Look at Previous Delays
The SEC has a history of postponing decisions on spot Bitcoin ETFs. In late August, the agency first delayed decisions on Fidelity’s Wise Origin Bitcoin Trust, the VanEck Bitcoin Trust, and the WisdomTree Bitcoin Trust when the initial deadline was approaching. Additionally, the SEC recently deferred a decision on the proposed ARK 21Shares Bitcoin ETF to January 10.
Despite these delays, Bloomberg ETF analysts have increased the likelihood of a spot Bitcoin ETF being approved by the end of 2023 to 75%, up from 65%. The U.S. Court of Appeals’ ruling that the regulator must review its rejection of Grayscale’s attempt to convert the Grayscale Bitcoin Trust (GBTC) into an ETF was cited as the primary reason for this increased probability. However, recent observations suggest that these continuous delays may dampen hopes for a spot crypto ETF approval before the end of 2023.
For those interested in tracking the developments of these spot Bitcoin ETF proposals, the cryptoview.io application offers comprehensive insights and analysis.
