SEC Postpones Decision on Bitcoin ETF Applications from BlackRock, Invesco and Bitwise

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SEC Postpones Decision on Bitcoin ETFs Due to Possible Shutdown

The US Securities and Exchange Commission (SEC) has once again postponed its decision on several applications for Bitcoin exchange-traded index funds (ETFs), including applications from financial giants BlackRock and Invesco, as well as cryptocurrency specialist Bitwise.

As per reports on September 28, these delays came earlier than expected, surprising many applicants who anticipated a response from the securities regulator between October 16 and 19.

The timing of these delays closely ties with the looming U.S. government shutdown, which could occur on October 1 if Congress fails to agree on various funding proposals for government operations.

Currently, Congress must pass 12 different funding bills for the entire year by the end of September to avert the shutdown. The potential shutdown would affect the operations of various federal agencies, including regulatory bodies like the SEC.

US SEC Continues to Postpone Bitcoin ETF Decisions:

This isn’t the first time the SEC has delayed decisions on Bitcoin ETFs. A previous round of delays occurred at the end of August, just as the initial deadline approached.

The third set of deadlines for these seven firms is slated for mid-January, but there’s a possibility that these deadlines may also be extended.

The SEC must make a final decision by mid-March at the latest.

Optimism Grows for Approval of Bitcoin Spot ETF:

Prospects for approving a Bitcoin ETF have gained momentum in recent months. In August, Eric Balchunas, an ETF analyst at Bloomberg, estimated the likelihood of a Bitcoin ETF being approved by the end of 2023 at 75%, up from his earlier estimate of 65%.

This optimism was fueled by the U.S. Court of Appeals Circuit’s decision in favor of Grayscale over the SEC, indicating a more favorable environment for such approvals. Balchunas has even increased the odds to 95% by the end of 2024.

So far, the U.S. securities regulator SEC has not approved a Bitcoin spot ETF due to a lack of clarity and investor protection.