July 21, 2024
SEC Delays BlackRock, Invesco, and Bitwise Bitcoin ETFs.
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SEC Delays BlackRock, Invesco, and Bitwise Bitcoin ETFs

The United States Securities and Exchange Commission (SEC) has postponed its decision on several proposals for spot Bitcoin exchange-traded funds (ETFs), including one from BlackRock, in anticipation of a looming government shutdown.

In addition to BlackRock, the spot Bitcoin ETF applications submitted by Invesco, Bitwise, and Valkyrie have also been delayed, as per separate filings on September 28. Bloomberg ETF analyst James Seyffart predicts that applications from Fidelity, VanEck, and WisdomTree will likely face similar delays by the SEC. These delays occurred two weeks ahead of the scheduled second deadline, which many applicants had expected to receive decisions on by October 16-19.

Seyffart believes the timing of these delays is tied to the anticipated U.S. government shutdown, which could occur on October 1. Such a shutdown would disrupt the functioning of the country’s financial regulators and federal agencies. The House and Senate have yet to reach agreements on various funding bills to finance government operations, and Congress must pass 12 separate full-year funding bills by October 1 to prevent a shutdown.

In late August, the SEC had already delayed a batch of spot Bitcoin ETF applications as the first deadline approached.

Looking ahead, the third set of deadlines for the seven firms in question is around mid-January, and these deadlines could also be subject to delays. The SEC must reach a final decision by mid-March at the latest. Bloomberg ETF analyst Eric Balchunas estimated in late August that the likelihood of a spot Bitcoin ETF being approved by the end of 2023 had risen to 75%, up from a previous estimate of 65%. This increase in probability was attributed to the swift and unanimous decision reached by the U.S. Court of Appeals Circuit in Grayscale’s legal victory over the SEC.

Balchunas even raised the odds to 95% by the end of 2024, indicating growing optimism regarding the eventual approval of spot Bitcoin ETFs.

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Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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