The U.S. Securities and Exchange Commission (SEC) has once again postponed its decision on four high-profile Bitcoin exchange-traded fund (ETF) filings. The applications from BlackRock, Bitwise, Invesco Galaxy Digital, and Valkyrie have been extended for the second time in a month. The SEC stated that it is following the formal process and is currently collecting public comments before making a decision. The original deadline for these ETF applications was scheduled for October 16 to 19, but due to an expected government shutdown, the SEC expedited its announcement.
This delay in approving Bitcoin ETFs comes at a time when several investment firms have filed or resubmitted spot Bitcoin ETF applications, with Grayscale’s ETF conversion being a notable example. Recently, a U.S. court overturned the SEC’s decision to disapprove Grayscale’s application, potentially increasing the likelihood of approval in the future. Additionally, the SEC has also delayed Ark Invest’s ETF application for the second time this week. Furthermore, there are three more ETFs from WisdomTree, Fidelity, and VanEck, with deadlines in the third week of October. According to ETF expert James Seyffart, these applications are expected to face similar delays due to the impending government shutdown.
The SEC’s ongoing delays in approving Bitcoin ETFs raise questions about the regulatory landscape surrounding cryptocurrency investments. These delays could be attributed to the SEC’s cautious approach towards cryptocurrencies, as they continue to assess the potential risks and determine the necessary regulatory frameworks. However, with the increasing demand and mainstream adoption of Bitcoin and other digital assets, there is growing anticipation for the approval of these ETFs, which could open up new avenues for retail and institutional investors to access the cryptocurrency market. The outcome of these pending ETF applications and their subsequent impact on the crypto market will be closely monitored by investors and industry stakeholders.
