What’s Happening with the SEC and Bitcoin ETFs?

The United States Securities and Exchange Commission (SEC) has decided to take its sweet time—maybe a little too sweet—when it comes to deciding on the ARK 21Shares spot Bitcoin (BTC) exchange-traded fund (ETF). In a rather dramatic announcement on September 26, the SEC chose to extend by a whopping 60 days its deadline for making a decision. This delays the fate of the ARK 21Shares application until January 10, 2024, which is about as timely as a snail mail letter these days.

The Never-Ending Waiting Game

In the land of ETFs, patience isn’t just a virtue; it’s a survival tactic. The SEC’s announcement comes on the heels of its earlier delay on August 11, pushing back the timeline to November 11. So, what’s with all this extra time? The SEC said they need more time to consider the proposed rule change and the multitude of issues swirling around it. Let’s just hope it’s not another “let’s take a coffee break” session.

Two for One Delay: GlobalX Joins the Party

Just in case you thought ARK 21Shares was the only player in the ETF waiting game, hold on to your seats! The SEC also announced a defer for GlobalX’s Bitcoin ETF application. This was due for a decision on October 7, but they’ll have to wait a little longer—who knows, perhaps until Thanksgiving? The SEC seems to be loving this delay game, and who are we to judge their commitment to suspense?

What Are Lawmakers Saying?

In an interesting turn of events, a group of four U.S. Representatives has weighed in, urging the SEC’s Chair, Gary Gensler, to approve a spot Bitcoin ETF without further ado—like yesterday. They’ve voiced concerns regarding the SEC’s seemingly inconsistent standards, which allow crypto futures ETFs but balk at the idea of spot ETFs. I mean, who knew crypto could get tangled in politics?

Industry Implications and Next Steps

The SEC has thus far not approved any Bitcoin ETFs for listing on U.S.-based exchanges, which begs the question: Should we even bother holding our breath? While industry experts were buzzing about a potential reevaluation of pending applications after the SEC’s court loss to Grayscale in August, the current delays leave us in a fog of uncertainty. With other major firms like BlackRock and Fidelity also awaiting their ETF deadlines this October, one can only wonder what kind of musical chairs these regulators are playing.

Final Thoughts

At this point, if you’re trying to pinpoint the SEC’s next move in the world of crypto ETFs, you might as well be forecasting the weather. Not that they’ll ever admit it, but one could argue that the SEC’s slow dance with these ETFs is probably more confusing than a riddle wrapped in an enigma. While these delays surely keep us on our toes, let’s keep our fingers crossed that the SEC will move into a more decisive phase in the near future. Otherwise, we might need to stock up on popcorn for this ongoing saga.