The U.S. Securities and Exchange Commission (SEC) is delaying its decision on the approval of spot-based Bitcoin (BTC) exchange-traded funds (ETFs) until October.
In new documents, the regulatory body announces that it will reverse its decision to approve or deny numerous bids from August to October to create BTC ETFs, including those from financial firms Invesco, WisdomTree and Valkyrie.
A Bitcoin ETF would give investors exposure to crypto assets through brokers, much like precious metals like gold and silver.
The move comes as no surprise to Bloomberg ETF analyst James Seyffart say it would have been shocking if the SEC actually made a decision this week.
“Mid October are the next important days to look at. Namely October 16. Also a reminder that we fully expected delays on this round [market] Bitcoin ETF Deposits. It would have been a shock if they were approved this week.”
Earlier this week, Seyffart and another Bloomberg ETF analyst, Eric Balchunas, said there is a 75% chance that a spot market BTC ETF would be approved by the end of 2023 and a 95% chance that it would be approved by the end of 2024 . .
While the decision has been delayed, former SEC Chairman Jay Clayton recently said that the approval of BTC ETFs is “inevitable” as it is clear that Bitcoin does not qualify as a security and the SEC’s concerns about investor safety by financial institutions have been addressed.
Bitcoin is trading at $25,627 at the time of writing, down 2.54% over the past 24 hours.
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