SEC Delays Decisions on Bitcoin ETF for Blackrock and Others by 45 Days

As analysts expected, Securities and Exchange Commission (SEC) has once again delayed its upcoming decision on whether to approve a series of applications for a bitcoin spot ETF.

This pushes their decision dates back by another 45 days.

According to the SEC’s website, decisions have been postponed for the proposed ETFs from Blackrock, Invesco, Wisdomtree, Valkyrie, Bitwise, VanEck, and Fidelity.

– The Commission finds it appropriate to set a longer period within which measures will be taken regarding the proposed rule change to have sufficient time to consider the issues raised in it – the SEC wrote in its delay letter to Blackrock on Thursday.

Bloomberg ETF analysts James Seyffart and Eric Balcunas had predicted delays ahead of time in a note on Wednesday. Simultaneous approval for all applicants, they noted, is very unlikely so soon after the court ruling.

The recent defeat of the SEC in its lawsuit with Grayscale has piqued market interest regarding the next move. The court ruled that the agency’s justifications for approving bitcoin futures ETFs, while still denying spot ETFs, are ‘unreasonable’ and ‘inadequate’.

Earlier this month, the SEC delayed its decision on whether to approve the ARK/21Shares bitcoin ETF, seeking public comment on whether the CME bitcoin futures market would be suitable for a market surveillance agreement.

The agency also asked whether the cryptocurrency exchange Coinbase could assist in detecting, investigating, and deterring fraud and manipulation in the bitcoin spot market. BlackRock and other applicants have chosen Coinbase as their preferred surveillance partner, but the company is currently being sued by the SEC.

The next deadline for the approval or rejection of BlackRock’s ETF is October 17. The SEC may decide to delay the deadline multiple times, potentially until March 2024.