SEC Delays Upcoming ETF Decision For Blackrock and Others

As expected by analysts, the Securities and Exchange Commission (SEC) has again delayed its upcoming decision on whether to approve a slew of Bitcoin spot ETF applications.

This pushes forward their respective decision dates by another 45 days.

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

• “The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” wrote the SEC in its delay letter to BlackRock on Thursday.

• Bloomberg ETF analysts James Seyffart and Eric Balcunas predicted the delays ahead of time in a note on Wednesday. A simultaneous approval for all applicants, they stated, was “highly unlikely so soon after the court decision.”
• The SEC’s recent defeat in its lawsuit with Grayscale has markets curious over its next move. The court ruled that the agency’s justifications for approving Bitcoin futures ETFs while continuing to deny spot ETFs were “unreasonable” and “inadequate.”
• Earlier this month, the SEC pushed forward its decision on whether to approve the ARK/21Shares Bitcoin ETF, requesting public comment on whether CME Bitcoin futures market would be well suited to it for a market surveillance agreement.
• It also asked whether crypto exchange Coinbase might help with “detecting, investigating, and deterring fraud and manipulation,” in the Bitcoin spot market. Coinbase has been selected by BlackRock and other applicants as a new surveillance partner of choice, but the firm is currently being sued by the SEC.
• The next deadline for BlackRock’s ETF approval or denial is on October 17. The SEC may choose to repeatedly forward the deadline, potentially until March 2024.