Has The SEC Delayed the Spot Bitcoin ETF Decision to Early 2024?

There is much anticipation about the spot Bitcoin (BTC) exchange-traded fund (ETF) after the world’s largest asset management firm BlackRock filed the application with the US Securities and Exchange Commission (SEC). The crypto community is anticipating approval in August. However, many on Crypto X (Twitter) report that the SEC has delayed the Bitcoin ETF deadline to early 2024.

On Tuesday, August 15, many prominent crypto-focused X accounts and some mainstream media platforms reported that the US SEC, which has final authority on spot Bitcoin ETF approval, had postponed the decision to approve a spot Bitcoin ETF to early 2024. Whalewire wrote:

“SEC has postponed the deadlines for all #Bitcoin ETF approvals until 2024. And of course, the crypto mainstream media is dead silent on this, after they all said they would approve it this month, lol!”

It is reported that with a maximum 240-day window to delay crypto ETF applications, firms would have to wait until March 2024 to hear decisions on filings made in July 2023. This means Cathie Wood’s Ark Invest will receive the SEC decision in January 2024. Other firms would have to wait as late as March 2024.

SEC has approved many Bitcoin futures ETFs since the first in October 2021. However, this investment product does not directly involve Bitcoin. On the other hand, spot ETF could involve holding Bitcoin within a fund for more direct investment. And it is currently the major roadblock in spot EFTs’ way.

SEC Delayed the Bitcoin ETF Decision?

SEC still seems reluctant to approve spot crypto and Bitcoin ETFs over the fears of market manipulation. The regulatory landscape is messy, and the SEC is embroiled in legal fights with many too-big-to-fail crypto companies like Coinbase, Binance, and Ripple. US lawmakers are considering legislation to better define the SEC and CFTC’s roles in regulating digital assets.

The SEC is reviewing Spot Bitcoin EFTs applications from 9 asset managers, including BlackRock, ARK Invest, Bitwise Asset Management, VanEck, WisdomTree, Invesco, Galaxy Digital, Fidelity, and Valkyrie. GreyScale and Ark Invest are currently suing the SEC over their ETF applications.

Did the SEC Delayed the Bitcoin ETF Decision?

However, the credibility of the news is in question as there is no apparent source of the news, and X Community Notes labeled it as speculation. X account CrediBULL Crypto wrote:

“More fake news spreading because some big account decided to make something up for engagement, and then a bunch of other accounts repost without doing 5 minutes of due diligence. No truth to this. Trying to get you to dump your bags before the biggest move in months smh.”

The community blamed an X account, WhaleChart, for spreading most of the fake and unverified crypto news.

Nevertheless, analysts are sure that the spot Bitcoin ETF, sooner or later, is coming. Bloomberg ETF analysts James Seyffart and Eric Balchunas said the chances of an area Bitcoin ETF approval had risen significantly in the past few months, particularly after BlockRock filing. The securities regulator is expected to approve multiple applications simultaneously to avoid any company having an advantage over another.

The decision in GreyScale versus SEC case, expected on Friday, August 18, could be the decider in determining the fate of spot Bitcoin ETFs.