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The prospects for a Bitcoin Exchange-Traded Fund (ETF) receiving approval this year have diminished following reports that the U.S. Securities and Exchange Commission (SEC) may refrain from such endorsements. In a recent article, Bloomberg’s experienced analyst, James Seffyat, provided insights on this matter. He pointed out that recent actions by the SEC suggest that no ETF approvals are expected in 2023.
Particularly alarming to observers was the SEC’s choice to overlook pending second deadlines and delay the ARK 21Shares ETF submission. Seffyat speculates that this action indicates the SEC may be postponing all upcoming filings. Significant ETF submissions from BlackRock, Bitwise, VanEck, Invesco, Wisdomtree, Fidelity, and Valkyrie are scheduled for consideration in October.
Reflecting on the reasons behind the SEC’s early postponement, Seffyat proposes two scenarios. The looming U.S. Federal Government shutdown could lead the SEC to clear its agenda. With a projected furlough impacting 90% of the SEC staff, operations are expected to halt starting October 1. Additionally, Seffyat references a recent congressional letter to the SEC, urging the agency to avoid biased positions against Bitcoin ETFs.
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The cryptocurrency community has been filled with anticipation regarding ETF approvals. Many believe that such an endorsement could trigger a revival in the crypto market. Furthermore, they argue that ETFs could serve as a conduit for traditional investors, providing them with access to crypto assets.
Nonetheless, the views expressed by Seffyat align with a wider consensus among analysts in the cryptocurrency sector. Despite Grayscale’s victory over the SEC igniting hope for a Bitcoin ETF launch in 2023, the SEC’s subsequent actions indicate a different outlook.
Additionally, while the increasing number of ETF applications from major financial institutions suggested possible approval, the SEC has upheld its rigorous stance. Whether this cautious approach will change remains uncertain, but for the time being, the sentiment remains one of cautious pessimism.
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