The US Securities and Exchange Commission (SEC) has chosen to defer its judgement concerning the approval of several spot Bitcoin Exchange-Traded Funds (ETFs) spearheaded by notable firms WisdomTree, Invesco, and Valkyrie.
Decision Delayed until Mid-October
In an official statement released this Thursday, the SEC made it clear that it would require additional time, extending at least till October 17th, to evaluate whether to greenlight, decline or launch proceedings to further evaluate these ETF applications.
The rationale provided emphasized the need for an extended period to thoroughly contemplate the proposed amendments and associated concerns. The decision to postpone doesn’t specify a particular reason but is consistent with the SEC’s practice of issuing decisions within 45 days of an application’s appearance in the federal register.
Setting a Pattern
It’s essential to note that this isn’t the initial deferment by the SEC concerning Bitcoin ETF proposals. The regulatory body, within a stipulated 240-day timeframe, has numerous other deadlines to address the applications from Invesco, WisdomTree, and Valkyrie.
Moreover, the SEC is poised to respond to several other aspiring Bitcoin ETF initiatives, with names like BlackRock, Fidelity, Bitwise, and VanEck expecting feedback by week’s end.
The recent postponement regarding WisdomTree, Valkyrie, and Invesco didn’t surprise many, especially considering the regulator’s prior decision to hold off on Ark Invest and 21Shares’ proposal last month. During that time, the SEC announced it would initiate proceedings to assess the Ark 21Shares Bitcoin ETF’s eligibility for trading and subsequently sought public input.
Industry Optimism on Bitcoin ETF Approval
Several sector enthusiasts anticipate a positive verdict on the spot Bitcoin ETFs, with predictions indicating a decision more likely towards 2023’s culmination or even 2024. In a recent development that buoyed many, Bloomberg Intelligence analysts enhanced their probability estimates for a spot Bitcoin ETF endorsement by year-end 2023 from 65% to 75%. This surge in confidence followed Grayscale Investments’ triumphant legal bout against the SEC in the DC Circuit Court of Appeals earlier this week.
