In a move that can only be described as extension strategy, the United States Securities and Exchange Commission (SEC) has again delayed its judgement on pending applications for spot Bitcoin exchange-traded funds (ETFs). The SEC’s decision encompasses large outfits such as BlackRock and Invesco, as well as youngsters in the crypto field like Bitwise. The filings received on September 28 arrived earlier than applicants had forecasted, as they were expecting responses between October 16 and 19.
This regulatory rescheduling isn’t operating in a vacuum; it coincides with the edging threat of a U.S. government shutdown, expected on October 1. Congress’ approval on diverse funding bills for governmental operations is becoming increasingly crucial. If Congress fails to pass 12 separate yearly funding bills by the end of September, several federal agencies, including the SEC, would face a potential interruption in their functionalities.
The SEC has a reputation for such suspensions. A previous round of delays surfaced in late August, shortly before the first deadline for Bitcoin ETFs. As the calendar rolls, the third set of deadlines for these seven applicants is hovering around mid-January. However, there’s a whiff of suspicion that these deadlines might be stretched further. A concrete decision from the SEC is a must by mid-March at the latest.
Simultaneously, optimism surrounding a Bitcoin ETF approval is gaining momentum in the crypto world. Back in August, Eric Balchunas, Bloomberg ETF analyst, forecasted a 75% chance of a spot Bitcoin ETF approval by the end of 2023. His earlier prediction was only 65%. A turning point contributing to this optimistic shift was the U.S. Court of Appeals Circuit’s unambiguous ruling in favour of Grayscale over the SEC. This outcome hinted a more promising environment for approvals, prompting Balchunas to even elevate the odds to 95% by the end of 2024.
Contrarily, the US SEC remains painstakingly cautious, refraining to date from giving the nod to any Bitcoin ETF. Their reasons remain ensnared in concerns pertaining to blurry clarity and investor protection. As the saga progresses, it’s clear that the SEC’s cautionary approach towards the integration of crypto and traditional finance is meeting the industry’s push for broader acceptance head-on.
Source: Cryptonews
