The SEC has delayed its decision on the ARK 21Shares Bitcoin ETF and Global X Bitcoin Trust application till early 2024. This news has evoked mixed reactions from the crypto industry, with many anticipating further delays due to the likelihood of a US government shutdown.
Bloomberg ETF analyst James Seyffart shared news of the SEC’s decision on Twitter. He noted that the decision was made earlier than expected and this may delay all other applications too.
In a filing, the SEC noted that it needs “sufficient time to consider the proposed rule change”.
The SEC’s decision comes shortly after a group of US lawmakers urged the regulator to “immediately” allow a spot bitcoin ETF. This follows the US Court of Appeals for the District of Columbia Circuit granting Grayscale’s petition for a review, ordering the SEC to reconsider Grayscale’s application. The SEC has 45 days to seek an “en banc” appeal, which puts the deadline for such a move to October 13.
It is clear that the US government shutdown may be the cause of the delays. SEC Chair Gary Gensler is expected to address this during his appearance before the House Committee on Financial Services later today.
It is evident that a spot Bitcoin ETF is still a distant possibility and the crypto industry will have to wait for a few more months before any clear decision is reached.
