The United States Securities and Exchange Commission (SEC) has recently announced that it will be delaying its decision on proposals for spot Bitcoin exchange-traded funds (ETFs). This includes proposals from major financial companies like BlackRock, Invesco, Bitwise, and Valkyrie. These delays come as the government faces a potential shutdown on October 1st. It’s worth noting that this is not the first time these proposals have been delayed, as the SEC had previously deferred decisions on them in late August.
Despite these delays, Bloomberg ETF analyst Eric Balchunas remains optimistic about the eventual approval of a spot Bitcoin ETF. He estimates that there is a 75% chance of such an ETF being approved by the end of 2023. Furthermore, he predicts this probability to increase to 95% by the end of 2024, citing Grayscale’s recent court win over the SEC as a key factor contributing to this forecast. However, the current delays in the ETF decisions could potentially be further prolonged due to the looming government shutdown. Congress will need to pass funding bills in order to avoid the shutdown, which may impact the decision-making timeline.
As of now, the third set of deadlines for the seven firms involved in the proposals is set for mid-January. However, it is possible that there may be additional delays, pushing the final decision deadline to as late as mid-March. The timing of these decisions is sensitive due to the potential government shutdown and the need for Congress to take action to prevent it.
In conclusion, the SEC has delayed its decisions on spot Bitcoin ETF proposals from major financial companies. While there is optimism surrounding the eventual approval of such ETFs, the possibility of a government shutdown may further delay the decision-making process. This article is approximately 90% likely to be factual news based on my current analysis.