Indications Suggest SEC May Postpone Bitcoin ETF Spot

In a surprising twist, the United States Securities and Exchange Commission (SEC) has provided additional comments on the pending form S-1s submitted by applicants seeking approval for spot Bitcoin ETFs. This unexpected move occurred amidst widespread anticipation of an approval announcement leading up to the January 10, 2024 deadline.

The question now is whether this recent development signals a potential delay in the approval process. Perianne Boring, the President and founder of the Chamber of Digital Commerce, interprets it as a delay indication from the SEC. On the contrary, Bloomberg analyst James Seyffart offers a different perspective, suggesting that the issuance of additional comments may not necessarily be an indication of a deliberate delay in approving the ETF. Seyffart notes the unusual speed at which the SEC is handling the situation, emphasizing that the agency provided comments on the same day the form S-1s were submitted, reflecting the SEC’s prompt approach to Bitcoin ETF applications.

“This simply highlights how rapidly the SEC is processing these matters. If they intended to delay, the issuers wouldn’t have received comments back the same night.”

As the SEC officials approach the January 10, 2024 deadline, a crucial decision looms regarding the approval or rejection of the Ark 21Shares spot Bitcoin ETF filing. This filing marked one of the initial applications, paving the way for others from major entities such as Blackrock, Fidelity, Bitwise, Van Eck, and Valkyrie.

What’s on the Horizon?

As ETF issuers diligently address the necessary paperwork, the most recent wave of 19b-4s refiles has been submitted by a total of 9 issuers. Notably, as of 8 am Eastern Time on January 8, 2024, Blackrock’s refile for its iShares Bitcoin ETF was reportedly missing. Analysts, however, remain optimistic, suggesting that the approval is likely forthcoming, considering the potential for later amendments. The looming question now is whether the US SEC officials will adhere to the January 10 deadline for approving the first-ever spot Bitcoin ETF in the United States.