SEC Postpones Ruling on Four Bitcoin Spot ETF Applications in Anticipation of Government Shutdown

September 30, 2023
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The U.S. Securities and Exchange Commission has again delayed its decision on four prominent Bitcoin exchange-traded funds (ETFs) filings currently under consideration.

On September 28, the SEC made separate announcements for BlackRock along with Bitwise, Invesco Galaxy Digital, and Valkyrie.

This marks the SEC’s second extension for the BlackRock, Invesco, Galaxy Digital, and Valkyrie Funds in a month.

The SEC said a formal process is underway according to Section 19(b)(2)(B) of the Securities Exchange Act of 1934. The Commission is still gathering public comments on the proposal and has not made a decision yet.

The deadline for making a decision for these ETF applications was scheduled between October 16 to 19.

However, due to an impending government shutdown expected this weekend, the SEC expedited its announcement.

Government funding ends on Sunday at 12:01 am on Sunday, temporarily shutting down several federal agencies including the SEC, and halting economic data releases.

SEC continues to delay ETF applications

At least, seven investment firms have either newly filed or resubmitted spot Bitcoin ETF applications this year.

This does not include Grayscale’s ETF move to convert its Bitcoin trust shares to an ETF.

A U.S. court recently overturned the SEC’s decision to disapprove Grayscale’s application, increasing the chances of approval in the near future.

Earlier this week, the SEC also delayed Ark Invest’s ETF application for the second time.

Moreover, there are three additional ETFs with deadlines in the third week of October from WisdomTree, Fidelity, and VanEck.

According to Bloomberg’s ETF expert, James Seyffart, these applications are likely to meet similar delays before the U.S. government shutdown.

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