The United States Securities and Exchange Commission has delayed its decision on several bitcoin (btc) exchange-traded fund (ETF) proposals, including Black Rockbefore an early government shutdown.
bitcoin ETF Spot Applications Invesco, Bit by bit and valkyrie were also delayed by the SEC, according to separate filings on September 28, while Bloomberg ETF analyst James Seyffart expects Fidelity, VanEck and WidsomTree’s applications to also be rejected by the securities regulator.
OTHER: @BlackRock joins the party on the spot bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin Delays in the ETF. Three of seven down. https://t.co/Cn9DSibqf8 pic.twitter.com/eJTzDNInCi
-James Seyffart (@JSeyff) September 28, 2023
Seyffart hoped the delays were due to a US government “shutdown” that could take place on October 1.
Both chambers of Congress (the House and Senate) have not reached agreement on several bills to fund government operations, which has jeopardized the near-term future of the United States government.
Congress needs to pass 12 full-year funding bills by Oct. 1 to avoid a shutdown.
The latest delays came two weeks before the second expected deadline for many applicants, many of whom expected to hear from the securities regulator between October 16 and 19.
The SEC delayed a group of bitcoin spot ETF applicants in early September, as the first deadline approached.
Meanwhile, the third set of deadlines for the seven companies is around mid-January and could also be delayed. The SEC will have to make a final decision no later than mid-March.
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In late August, Bloomberg ETF analyst Eric Balchunas estimated that the probability of a spot bitcoin ETF being approved by the end of 2023 had increased to 75% (from 65% previously).
He cited the unanimity and decisiveness with which the U.S. Circuit Court of Appeals reached its decision in Grayscale’s victory over the SEC as the main reason behind the increased odds.
Balchunas further raised those odds to 95% by the end of 2024.
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