SEC Delays Bitcoin ETF Approvals, Sets Final Deadline for January 2024

The clearance procedure for Bitcoin exchange-traded funds (ETFs) has once more been postponed by the US Securities and Exchange Commission (SEC). The Ark/21Shares ETF and GlobalX’s ETF proposal, both keenly anticipated by the cryptocurrency community, are among the impacted applications.

Despite entering the contest after the deadline, GlobalX’s entry had a response date of October 7. The waiting time was, however, extended by the SEC. Similar to this, the SEC has now set a fresh deadline for the Ark/21Shares ETF, which was previously required to make a decision by November 11.

The SEC recently filed a document in which it declared: “The Commission designates January 10, 2024, as the date by which the Commission shall either approve or disapprove the proposed rule change.” The SEC must submit its final report by this date.

The SEC postponed Ark’s application in August, along with many other applications from competitor businesses that were initially due in early September, and this postponement comes after a slew of earlier delays. Notably, one of the top rivals, BlackRock, has set its subsequent deadline for October 17; however, this date may be extended.

A group of legislators that favor cryptocurrency wrote a letter to SEC Chair Gary Gensler at the same time as the most recent postponement. They pleaded with Gensler in the letter not to treat spot Bitcoin exchange-traded funds differently.

Grayscale recently prevailed in dispute against the SEC, securing a victory for the cryptocurrency sector. The complaint contended that the SEC’s decision to approve futures ETFs but rejecting a spot Bitcoin ETF was “arbitrary and capricious.” This victory has increased interest in the SEC’s reaction, which can entail authorizing a spot ETF or contesting the court’s ruling.

James Seyffart, an analyst with Bloomberg ETFs, feels that the delays on Tuesday have raised questions about whether a spot Bitcoin ETF will be authorized before year’s end. He predicted that there would soon be more delays, perhaps as a result of the SEC getting ready for a potential federal government shutdown.

In the meanwhile, Bitwise, another candidate for the Bitcoin ETF, has updated its application. The amendment presents new defenses against the SEC’s justifications for rejecting spot ETFs.