SEC Holds Back on Greenlighting Bitcoin ETFs, Including Blackrock’s
- Rudolph Harmon
- September 30, 2023
- Crypto, News
- Bitcoin ETF, Blackrock, SEC
- 0 Comments
The SEC delays decisions on Bitcoin ETFs, citing concerns about a potential government shutdown, affecting Blackrock, Valkyrie, and others. Regulatory uncertainty continues.
- The SEC postpones decisions on several spot bitcoin ETFs, affecting companies like Blackrock and Valkyrie.
- The delay is considered to be in anticipation of a potential U.S. government shutdown affecting the SEC’s staffing.
- Previous delays have impacted ETFs from Wisdomtree, Vaneck, and Fidelity, with deadlines looming in October.
- This move follows other delays and seems to reflect an overarching caution, potentially impacting the future of bitcoin ETFs in the United States.
The U.S. Securities and Exchange Commission (SEC) has once again deferred its decisions on numerous high-profile applications for spot bitcoin exchange-traded funds (ETFs), leaving the future of these financial instruments hanging in the balance. This delay affects significant players such as Blackrock, Valkyrie, Bitwise, and Invesco, impacting their endeavors to issue bitcoin ETFs in the United States.
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SEC Delays n ETFs
This move is aligned with the SEC’s previous postponements concerning the Ark 21shares and Global X spot bitcoin ETFs, adding to a growing list of delays. It’s speculated that these delays, arriving sooner than anticipated, are a precursor to the potential partial shutdown of the U.S. government, which would result in the SEC operating with minimal staff. SEC Chair Gary Gensler highlighted this possibility recently, warning about the implications of an inadequately staffed commission in the face of a shutdown.
This organizational inertia could continue into next year if an agreement on funding is not reached in Congress, sidelining numerous federal employees and elongating the waiting period for companies eager to launch their bitcoin ETFs.
Bloomberg analyst James Seyffart attributes the present delays to the looming government shutdown and has also hinted at potential further delays for applications from Vaneck, Wisdomtree, and Fidelity.
This prolonged indecision period by the SEC might also extend to legal battles, as seen in the case against Grayscale, where the SEC may challenge the court’s favorable ruling towards the conversion of Grayscale’s Bitcoin Trust (GBTC) to a spot bitcoin ETF.
Concluding Thoughts
The recurrent delays by the SEC demonstrate a cautious and meticulous approach to the introduction of bitcoin ETFs in the United States. With the potential government shutdown adding another layer of complexity, the prospects for immediate progress in this domain appear dim.
This ongoing scrutiny reflects the regulatory challenges and the uncertainty surrounding crypto-related financial products, signaling the necessity for a comprehensive framework and clearer guidelines. For industry stakeholders and investors, these developments underline the volatile and unpredictable nature of the regulatory landscape in the crypto space, necessitating continuous vigilance and adaptability to navigate through impending regulatory deliberations.
