- The United States Securities and Exchange Commission (SEC) has postponed its decision on various proposals for spot Bitcoin exchange-traded funds (ETFs), including BlackRock, due to the looming possibility of a government shutdown. The SEC has extended the review timeline for spot Bitcoin ETF applications from Invesco, Bitwise, and Valkyrie, as indicated in separate filings made on September 28.
- Additionally, Bloomberg ETF analyst James Seyffart anticipates that the applications submitted by Fidelity, VanEck, and WidsomTree will also face delays at the hands of the securities regulator. These recent delays have occurred two weeks ahead of the previously scheduled second deadline, which many applicants had anticipated to be around October 16-19 when they expected to receive feedback from the securities regulator.
Why it matters
The delay in approving Bitcoin ETFs is closely monitored by the cryptocurrency market because such ETFs are seen as a way to potentially attract institutional investors and mainstream participation. The delay suggests that the SEC is taking its time to evaluate the proposals, which may either raise hopes for future approvals or lead to uncertainty in the market.
