The US Securities and Alternate Fee (SEC) has as soon as once more postponed its resolution on a number of proposals for spot Bitcoin exchange-traded funds (ETFs), together with functions from monetary giants BlackRock and Invesco, in addition to the cryptocurrency-focused Bitwise.
As per a number of filings on September 28, these delays have come sooner than anticipated, shocking many candidates who had been anticipating responses from the securities regulator between October 16 and 19.
The timing of those delays is intently tied to the looming menace of a U.S. authorities shutdown, which may doubtlessly happen on October 1 if Congress fails to agree on varied funding payments for presidency operations.
Presently, Congress should move 12 separate full-year funding payments by the top of September to avert this shutdown. The potential shutdown would disrupt the functioning of varied federal companies, together with monetary regulators just like the SEC.
US SEC Continues to Delay Selections on Bitcoin ETFs
This is not the primary time the SEC has pushed again decisions on Bitcoin ETFs. A earlier spherical of delays occurred in late August, simply as the primary deadline approached.
Trying forward, the third set of deadlines for these seven corporations is scheduled for round mid-January, however there is a chance that these deadlines is also prolonged.
The SEC should attain a closing resolution by mid-March on the newest.
Optimism Round Bitcoin Spot ETF Approval Grows
The prospects of a Bitcoin ETF approval have gained traction in current months. In August, Bloomberg ETF analyst Eric Balchunas estimated a 75% chance of a spot Bitcoin ETF approval by the top of 2023, up from an earlier 65%.
This optimism was fueled by the U.S. Court of Appeals Circuit’s decisive ruling in favor of Grayscale over the SEC, suggesting a extra favorable setting for such approvals. Balchunas has even raised the chances to 95% by the top of 2024.
To date the US SEC has not accepted any Bitcoin spot ETF, citing lack of readability and investor safety.