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In an unexpected move, the U.S. Securities and Exchange Commission (SEC) has decided to delay its verdict on several spot Bitcoin ETF applications, affecting major players like BlackRock, Invesco, Bitwise, and Valkyrie. This decision comes two weeks ahead of the initially planned deadlines between October 16 and 19.
Government Shutdown Looms Over Financial Markets
The SEC's decision seems to be influenced by the looming threat of a U.S. government shutdown, which could potentially disrupt financial regulations and other federal activities. The deadlock in Congress over various funding bills has only added to the uncertainty in the financial sector.
A History of Delays
This isn't the first instance where the SEC has deferred its decision on spot Bitcoin ETFs. A similar delay happened in late August, causing a chain reaction that has left both applicants and investors anxious. The SEC now has until mid-March to make its final decisions.
Unanswered Questions and Future Implications
While delays are not uncommon, the SEC's recent actions have raised more questions about the future of Bitcoin ETFs. This uncertainty is further fueled by an open letter from U.S. Representatives Tom Emmer, Mike Flood, Ritchie Torres, and Wiley Nickel, urging SEC Chair Gary Gensler for quick approval. Additionally, there is speculation about whether the SEC will challenge a recent court ruling in favor of Grayscale’s Bitcoin Trust application.
As the deadlines approach and uncertainty continues, all eyes are on the SEC for their final say on the matter.