The U.S. Securities and Exchange Commission (SEC) has extended the timeline for deciding on the approval of Bitcoin and Ethereum exchange-traded funds (ETFs). Currently, the applicants for these ETFs are waiting for a final decision expected in 2024.
SEC’s Delayed Review Process Extends to 2024
The SEC has pushed back the approval process for Spot Bitcoin and Ethereum Futures ETFs. On November 15, the commission filed for an extension, citing the need for more time to thoroughly review the applications and related issues. “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 issues raised therein,” the SEC mentioned in its filing.
Recently, the SEC has deferred the decision on Grayscale’s Ethereum Futures ETF application, submitted in September. Additionally, the commission has postponed the conversion of HashDex’s Bitcoin Futures ETF into a spot fund.
Despite the increasing demand and optimistic outlook for Bitcoin and Ethereum ETFs in the crypto market, the SEC has been slowing down the process by delaying approvals, citing concerns over market manipulation, fraud, and investor protection. Bloomberg’s Senior Analyst James Seyffart predicts more hold-ups from the SEC on BTC and Ether ETFs but maintains that these delays won’t affect his belief that a Spot Bitcoin ETF will likely be approved by January 10, 2024.
Seyffart commented,
“We’re close to the decision dates for 3 spot Bitcoin ETF applications. There’s a high chance of delayed orders from the SEC. But these delays won’t alter our views, and there’s a 90% chance for 19b-4 approval by Jan 10, 2024.”
The upcoming deadline for Hashdex and Franklin Spot Bitcoin applications is January 1, 2024. Of the 12 pending Spot BTC ETF applications, 10 have January 2024 deadlines, though the SEC might extend these to as late as March 2024. All decisions on the Spot BTC ETF filings are expected by May 2024.
Bitcoin’s Price Rises Despite SEC Delays, Exceeding $37K
Despite the SEC’s delays in approving Spot Bitcoin ETFs, BTC’s price has been climbing. TradingView reports that BTC has surpassed the $37,000 mark, with weekly gains of 4.35%. Currently trading at $37,112.68, BTC’s market cap for the day has increased by 2.25%, as shown on CoinMarketCap. This rise in BTC price, demonstrating bullish trends, has reignited optimism among investors and the crypto community, as they keenly await further updates on the SEC’s decision regarding Spot Bitcoin ETFs.
