The Securities and Exchange Commission (SEC) has postponed the Bitcoin ETF approval application filed by BlackRock. The date for the approval of the said exchange-traded commission recently came to pass.
SEC officials had the option to pass a verdict or get an extension on the matter. The agency is currently considering Bitcoin ETF applications for a number of financial institutions such as Bitwise, Valkyrie, Invesco, and other mega corporations.
The cryptocurrency market is monitoring every update regarding the matter to ascertain the impact on overall price trends. At present, SEC is dealing with offering a legal brief to the applicants for extending approval of Bitcoin spot ETFs or vice versa.
The agency has also requested an extension on the matter of Bitcoin ETFs for other applicants as well. Documents issued recently containing detailed information on the matter have listed the details on the matter and the concerned firms.
The Impact of Possible US Government Shutdown on Bitcoin ETFs
James Seyffart, an analyst from Bloomberg claimed that financial heavy weights on the list such as VanEck, Fidelity, and WisdomTree might also face a delay from SEC on this matter. The analyst based his projections on the probability of US government shutdown.
At present, House and Senate chambers are unable to reach a consensus for approving state operations. The Congress has to approve 12 funding bills for annual terms before October 1st to prevent this crisis.
SEC Delays Bitcoin Spot ETFs
Regardless of the constitutional problems, SEC has continued to crack down on the blockchain sector. The agency has proceeded to delay all Bitcoin spot ETFs.
Applicants who were due an official response in August have restrained also got extension regarding the matter instead. Critics are using these changes to point out the uncertainty associated with digital currency investments in the region. SEC availed extension on BlackRock ETF application two weeks before the due date.
At present 7 firms are expecting that SEC will share an update on the matter by January 2024. However, SEC has a legal pretext to avail delay on the third set of deadline set for the first month of next year as well. The decision of the agency is going to depend on political developments and changes in regulatory framework.
However, SEC cannot ask for delays after March next year. Experts opine that the probability of SEC granting an approval on Bitcoin ETF by end of the current year has risen to 75 percent.
Grayscale’s Victory
Many stakeholders talk about the victory of Grayscale at the US Court of Appeals leading to a unanimous verdict in favor of the trust. These statistics have increased the rapidly developing crypto sector and growing acceptance around virtual currencies.
Overall analysts have expressed optimism towards the increasing regulatory acceptance towards virtual currencies in the country.
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