SEC delays decision on three more spot Bitcoin-ETF applications

The U.S. Securities and Exchange Commission (SEC) delayed the decision on applications for spot Bitcoin-ETF from BlackRock, Invesco, Bitwise and Valkyrie.

The firms had expected a ruling by October 16–19, but a new date has been set for mid‑January 2024.

The Bloomberg analyst James Seyffart believes that decisions on applications from Fidelity, VanEck and WidsomTree will also be moved. Earlier the SEC had delayed review of the documentation for launching spot Bitcoin-ETF from ARK Invest and 21Shares.

ANOTHER: @BlackRock joins the party on spot #Bitcoin ETF delays. Three out of seven down. https://t.co/Cn9DSibqf8 pic.twitter.com/eJTzDNInCi

— James Seyffart (@JSeyff) September 28, 2023

In Seyffart’s view, the delay is linked to the anticipated U.S. government shutdown, which could occur on October 1. It would disrupt the work of the country’s financial regulators and other federal agencies.

Both chambers of Congress—the House and Senate—have not agreed on various funding bills. Lawmakers must therefore pass 12 separate documents before the start of October, or the government will be shut down.

Another Bloomberg expert, Eric Balchunas, spoke of rumors that the SEC has approached ETF issuers directly, something that had never happened before.

There’s chatter that SEC reached out to the issuers, which has never happened bf in process, to go over (likely some plumbing issues). Good news IMO vs same ole same ole delay, radio silence then denial in Jan bc of (likely) custody (or something else)

— Eric Balchunas (@EricBalchunas) September 28, 2023

At the end of August he counted that the probability of approval for the spot Bitcoin-ETF by the end of 2023 was 75%, and by the end of 2024 — 95%.

«Although we counted victory for Grayscale in our previous odds at 65%, the unanimity and confidence in the decision left the SEC with very little room to maneuver», — Balchunas added.

On September 27, the Commission announced the delay of the decision on the requests from 21Shares and VanEck to launch a spot Ethereum-based ETF.