The U.S. Securities and Exchange Commission (SEC) has postponed several ETF applications for spot Bitcoin ahead of the anticipated government shutdown.
“We have initiated additional steps to determine whether spot Bitcoin ETFs proposed by BlackRock, Invesco, Valkyrie, and Bitwise should be approved or denied, and there may be significant additional delays in ongoing review processes.”SEC
SEC to Decide by March 2024
In particular, this situation indicates that the third and final deadlines for these seven firms could be around mid-January, but these dates may also be delayed. Furthermore, the SEC will have to make a decision on ETFs no later than March.
According to Analysts, the Likelihood of Spot Bitcoin ETF Approval is Increasing
Furthermore, in late August, Bloomberg ETF analyst Eric Balchunas estimated a 75% chance of a spot Bitcoin ETF being approved by the end of 2023, as reported by Cointelegraph. He attributed this prediction to a court ruling in which the U.S. Court of Appeals ruled in favor of Grayscale against the SEC, along with the general support and determination behind that decision.
Subsequently, Eric Balchunas raised these odds to 95% by the end of 2024.
The approval of spot Bitcoin ETFs could further integrate the cryptocurrency world into the traditional financial system and provide easier access to Bitcoin for institutional investors. Despite the SEC’s continuous postponements of ETF decisions, it will have to make its initial decision in March.