The US Securities and Alternate Fee’s (SEC) early delay of the ARK 21Shares Spot Bitcoin ETF utility has raised issues within the crypto group about what this transfer may imply for the potential launch of any Spot Bitcoin ETF this 12 months.
No Spot Bitcoin ETF This Yr?
In a tweet shared on his X (previously Twitter) platform, Bloomberg Analyst James Seyffart questioned the SEC’s newest determination and whether or not or not it “might put the hammer down for any hopes of an ETF approval this 12 months.” He additional quizzed whether or not this implies we might see an imminent delay on another Spot Bitcoin ETF functions with a deadline in October.
On September 26, the SEC prolonged the time to resolve on Cathie Wooden’s ARK Make investments ETF utility till January 10, 2024 ( the ultimate deadline). Nevertheless, it’s worrisome that the Fee had till November 11 (about 46 days to go) earlier than making this determination however selected to do it this early. The SEC has often made such a call simply days (and never weeks) earlier than the deadline.
Seyfarrt confirmed much less optimism in a subsequent tweet when he said, “Its so over. All people can pack up and go dwelling now.” signaling that he had in all probability misplaced hopes of a Spot Bitcoin ETF being launched this 12 months.
Its so over. All people can pack up and go dwelling now. https://t.co/wBsTHXCuEs
— James Seyffart (@JSeyff) September 26, 2023
His statements are extra vital contemplating that he, alongside one other Bloomberg analyst, Eric Balchunas, had elevated the probability of a Spot Bitcoin ETF launching this year to 75% following Grayscale’s victory towards the SEC in August.
Amidst all these delays, the SEC is but to make an announcement concerning the Grayscale’s utility because the courtroom had ordered the Fee to assessment the appliance once more. Many anticipate the Fee to enchantment the choice, with the deadline for an enchantment coming in October.
Believable Causes For The SEC’s Early Delay
Many within the crypto group, together with Seyffart, had two main theories on why the SEC determined early on the ARK 21Shares Spot Bitcoin ETF utility. One, they attributed it to the potential authorities shutdown that’s looming.
The SEC is anticipated to be affected if the US authorities companies have been to close down on October 1. The Fee should furlough 90% of its workforce and droop most of its actions. Nevertheless, it appears far-fetched contemplating that November 11 nonetheless appears far off, and authorities actions can have resumed by then.
The second main concept was that the letter that Congress despatched to the SEC Chair Gary Gensler might need struck the mistaken nerves, prompting the Fee to make such a call.
Within the letter, the congressmen urged the Fee to approve the pending Spot Bitcoin ETFs following the courtroom’s determination within the Grayscale case, stating that the “SEC’s present posture is untenable transferring ahead.”
BTC worth nonetheless holding $26,000 regardless of spot ETF delay | Supply: BTCUSD on Tradingview.com
Featured picture from Unsplash, chart from Tradingview.com