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SEC Postpones Ruling on Bitcoin ETFs During Impending Government Shutdown

The U.S. Securities and Exchange Commission (SEC) has once again postponed its decision on four prominent Bitcoin exchange-traded fund (ETF) filings. The SEC made separate announcements on September 28 regarding the applications from BlackRock, Bitwise, Invesco Galaxy Digital, and Valkyrie. This marks the second extension for these funds within a month. The SEC is currently following a formal process and gathering public comments on the proposals before making a decision. The deadline for these ETF applications was originally set between October 16 and 19, but the SEC expedited its announcement due to an anticipated government shutdown.

Notably, seven investment firms have submitted new or resubmitted spot Bitcoin ETF applications this year, excluding Grayscale’s ETF move to convert its Bitcoin trust shares to an ETF. The SEC’s recent decision to disapprove Grayscale’s application was overturned by a U.S. court, increasing the chances of approval in the future. In addition to the four ETFs that have been delayed, Ark Invest’s application was also postponed for the second time this week. Furthermore, there are three more ETFs from WisdomTree, Fidelity, and VanEck with upcoming deadlines in October. Experts suggest that these applications are likely to face similar delays due to the U.S. government shutdown.

The repeated delays in the SEC’s decision on Bitcoin ETF applications have created uncertainty for investors and the cryptocurrency market. While the recent court ruling in favor of Grayscale’s application provides hope for approval, the ongoing pushback from the SEC raises concerns about the prospects of these ETFs. Additionally, the anticipation of a government shutdown further disrupts the decision-making process. As the cryptocurrency industry continues to grow, regulatory authorities will need to address these issues promptly to provide clarity and stability for market participants.

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