The United States Securities and Exchange Commission (SEC) has once again postponed its decision on several proposals for spot Bitcoin exchange-traded funds (ETFs). This delay includes applications from industry giants like BlackRock and Valkyrie, and it comes just ahead of a looming government shutdown.
The SEC initially delayed a decision on the proposed spot BTC ETFs in late August, simultaneously delaying Fidelity’s Wise Origin Bitcoin Trust, the VanEck Bitcoin Trust, and the WisdomTree Bitcoin Trust.
Adding to the uncertainty, the SEC recently opted to extend the review process for the proposed ARK 21Shares Bitcoin ETF, setting a new deadline for January 10th of the upcoming year.
These latest delays occurred two weeks earlier than many applicants had expected, as they had been prepared to hear from the securities regulator between October 16th and 19th.
ETF analyst James Seyffart, an analyst at Bloomberg, provided some insight into the situation, stating that the SEC has also deferred the spot Bitcoin ETF applications of Invesco and Bitwise in separate filings dated September 28th.
Furthermore, Seyffart anticipates that Fidelity, VanEck, and WisdomTree applications will likely face similar setbacks, prolonging the decision-making process.
Bitcoin ETF Approval: A Prolonged Path Ahead
The SEC’s decision to extend these reviews comes in light of concerns surrounding an impending U.S. government shutdown. With the possibility of such a shutdown looming on October 1st, the SEC, along with other federal agencies and financial regulators, is bracing for the impact on its operations.
This disruption has compelled the SEC to take a cautious approach to its decision-making process regarding the highly anticipated spot BTC ETFs.
“Institution of proceedings is appropriate at this time in view of the legal and policy issues raised by the proposed rule change,” noted the SEC in a filing related to the Valkyrie Bitcoin Fund. The regulator emphasized that instituting proceedings does not imply that any definitive conclusions have been reached on the underlying issues.
In a move aimed at transparency and soliciting expert opinions, the SEC has requested input from commentators in its filing concerning the Valkyrie Bitcoin Fund. Following this, there will be an additional 35-day rebuttal period, implying that the approval process will likely extend for several more months.
However, the uncertainty surrounding the government shutdown and its potential impact on regulatory agencies continues to cast a shadow over the timeline for these eagerly anticipated financial products.