SEC’s Reluctance on Bitcoin ETFs Dims Hope for 2023 Approval

The potential for a Bitcoin Exchange-Trust Fund (ETF) getting the green light this year took a hit with revelations that the U.S. Securities and Exchange Commission (SEC) might abstain from such endorsements. In a recent post, Bloomberg’s seasoned analyst, James Seffyat, shed light on this. He emphasized that recent SEC activities hint at no forthcoming ETF approvals 2023.

Particularly concerning to observers was the SEC’s decision to bypass pending second deadlines and postpone the ARK 21Shares ETF filing. This move, Seffyat speculates, signals the likelihood of the SEC stalling all forthcoming filings. Major ETF filings from BlackRock, Bitwise, VanEck, Invesco, Wisdomtree, Fidelity, and Valkyrie are slated for October deliberation.

Pondering the reasoning behind the SEC’s early delay, Seffyat posits two possibilities. The impending U.S. Federal Government shutdown might prompt the SEC to clear its slate. With an anticipated furlough affecting 90% of the SEC workforce, operations are set to pause come October 1. Secondly, Seffyat alludes to a recent congressional letter to the SEC, urging the regulator to eschew biased stances against Bitcoin ETFs.

The crypto community has been abuzz with anticipation for ETF approvals. Many contend that such an endorsement could catalyze a resurgence in the crypto sector. Additionally, they argue that ETFs could be a bridge for traditional investors, granting them exposure to crypto assets.

However, the sentiments shared by Seffyat resonate with a broader analyst consensus in the cryptocurrency realm. Even as Grayscale’s triumph over the SEC fanned the flames of hope for a Bitcoin ETF’s 2023 debut, SEC’s subsequent moves suggest otherwise.

Moreover, while the mounting ETF filings from traditional finance behemoths signaled potential approval, the SEC has maintained its stringent stance. Whether this cautious approach will see a shift remains to be seen, but for now, the mood remains cautiously pessimistic.