The U.S. Securities and Exchange Commission (SEC) has once again postponed its decision on four prominent Bitcoin exchange-traded funds (ETFs) filings. The SEC made separate announcements for BlackRock, Bitwise, Invesco Galaxy Digital, and Valkyrie, marking the second extension for these funds in a month. The SEC is currently gathering public comments on the proposals and has not yet made a decision. The deadline for these ETF applications was initially scheduled between October 16 to 19, but the announcement was expedited due to the impending government shutdown. This delay adds to the uncertainty surrounding the approval of Bitcoin ETFs.
In addition to the four mentioned funds, there have been at least seven investment firms that have either newly filed or resubmitted spot Bitcoin ETF applications this year. Grayscale’s move to convert its Bitcoin trust shares to an ETF recently received a favorable ruling by a U.S. court, overturning the SEC’s decision to disapprove the application. This ruling increases the chances of approval in the near future. Moreover, Ark Invest’s ETF application was also delayed by the SEC for the second time this week. There are three more ETFs with deadlines in the third week of October from WisdomTree, Fidelity, and VanEck, all of which are likely to face similar delays amidst the U.S. government shutdown.
Overall, the SEC’s repeated delays in making a decision on Bitcoin ETFs, along with the uncertainty caused by the impending government shutdown, create a high level of unpredictability regarding the approval of these funds. While some rulings have been favorable for Bitcoin ETF applications, the delays and the current political climate further contribute to the uncertain regulatory landscape of the cryptocurrency market. Investors and industry participants will have to wait longer for a definitive decision on Bitcoin ETFs, which could impact the broader adoption and integration of cryptocurrencies into traditional financial systems.
