Key Points:
- SEC Delays Impact Prominent Bitcoin ETF Proposals
- Government Shutdown Concerns Prompt Preemptive Delays
- Questions Surrounding Grayscale Decision Linger
The Securities and Exchange Commission (SEC) has postponed its decisions regarding the approval of various Bitcoin ETF proposals. This move comes shortly after the postponement of decisions on Ark 21Shares and GlobalX ETFs until January.
The recent delays, which were filed on Thursday, primarily concern applications from BlackRock, Valkyrie, and Bitwise for Bitcoin ETFs. The SEC had initially delayed its decision on these funds back on August 31st.
In a separate development, the SEC also extended the decision timeline for Hashdex’s Bitcoin ETF, which was originally expected to be determined around October 6th.
According to Bloomberg’s James Seyffart, these delays are occurring in anticipation of a potential government shutdown. During a recent hearing in Washington, D.C., SEC Chair Gary Gensler expressed concerns that a government shutdown would leave the regulatory agency with a severely reduced staff.
Among the Bitcoin ETF applications, BlackRock’s proposal is generating the most anticipation. BlackRock, a massive asset manager with assets totaling $9 trillion, has a strong track record of receiving approvals from the SEC. Bloomberg’s Eric Balchunas and Seyffart have reported a success rate of approximately 575-1 for BlackRock.
Prior to this second delay, many of the hopeful ETFs had deadlines set for mid-October. However, industry experts have noted that the SEC has the authority to extend its rulings until the end of the 240-day deadline period, as previously reported by Blockworks.
These delays have raised questions about whether the SEC intends to challenge the decision regarding Grayscale. In that case, a panel of judges had ruled in favor of Grayscale and urged the SEC to reevaluate its application to convert its Bitcoin Trust (GBTC) into an ETF.
As Blockworks has pointed out, there is a 45-day window from the August 29th decision for the SEC to file an appeal, with October 13th being the final day. Nonetheless, while Bitcoin ETFs are encountering further, though expected, delays, the SEC is continuing to move forward with Ethereum futures ETFs.
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