The U.S. Securities and Exchange Commission (SEC) has once again delayed its decision on the approval of spot Bitcoin exchange-traded funds (ETFs), casting a shadow of uncertainty over the fate of several ETFs on Bitcoin. The applications affected by these delays include those from financial giants such as Invesco, Bitwise, Valkyrie, and most recently, BlackRock.
— James Seyffart (@JSeyff) September 28, 2023
The SEC’s decision-making process has been closely watched by the cryptocurrency market, as it grapples with delays and a potential government shutdown.
The reasons for these surprising delays appear to be related to the looming threat of a U.S. government shutdown, which could disrupt several federal agencies and financial regulators in the country. Despite these setbacks, market experts give the BlackRock ETF a high chance of approval.
BlackRock is the Latest Victim of the SEC’s Chopping Block
The SEC has issued a statement regarding the application of BlackRock, inviting public input on whether the iShares Bitcoin Trust should be given the green light or not. This action effectively prolongs the timeframe for the Commission to make a decision on the suggested rule modification, with the subsequent cutoff date now set for January 15, 2024.
BlackRock has an approval ratio of 575:1, but the SEC’s ratio when it comes to rejecting Bitcoin spot ETFs is just as clear: 33:02. However, because BlackRock has close ties to US regulators and Democratic politicians, there is room for an optimistic outlook on the likelihood of approval.
Moving forward, the third round of deadlines for these seven firms is tentatively scheduled for mid-January. However, these dates may be subject to change based on the dynamic political and regulatory environment. The SEC is expected to reach a final verdict by mid-March.
It is worth noting that the probability of a Bitcoin ETF receiving approval by the end of 2023 has risen to 75 percent, up from the previous estimate of 65 percent. This increase in probability is indicative of the growing confidence in the regulatory approval of Bitcoin ETFs despite current uncertainties.
In conclusion, while the delays have caused some concern in the market, there remains a strong sense of optimism. The potential approval of a Bitcoin ETF could trigger a significant shift in the cryptocurrency market, opening up new opportunities for investors and further legitimizing digital currencies in the eyes of traditional financial institutions.