Early Rejection Of 21Shares Spot Bitcoin ETF Sparks Concerns

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The US Securities and Alternate Fee’s (SEC) early delay of the ARK 21Shares Spot Bitcoin ETF software has raised considerations within the crypto group about what this transfer would possibly imply for the potential launch of any Spot Bitcoin ETF this yr.

No Spot Bitcoin ETF This 12 months?

In a tweet shared on his X (previously Twitter) platform, Bloomberg Analyst James Seyffart questioned the SEC’s newest resolution and whether or not or not it “could put the hammer down for any hopes of an ETF approval this yr.” He additional quizzed whether or not this implies we may see an imminent delay on another Spot Bitcoin ETF purposes with a deadline in October.

On September 26, the SEC prolonged the time to determine on Cathie Wooden’s ARK Make investments ETF software till January 10, 2024 ( the ultimate deadline). Nonetheless, it’s worrisome that the Fee had till November 11 (about 46 days to go) earlier than making this resolution however selected to do it this early. The SEC has normally made such a call simply days (and never weeks) earlier than the deadline.

Seyfarrt confirmed much less optimism in a subsequent tweet when he acknowledged, “Its so over. All people can pack up and go residence now.” signaling that he had in all probability misplaced hopes of a Spot Bitcoin ETF being launched this yr.

Its so over. All people can pack up and go residence now. https://t.co/wBsTHXCuEs

— James Seyffart (@JSeyff) September 26, 2023

His statements are extra important contemplating that he, alongside one other Bloomberg analyst, Eric Balchunas, had elevated the probability of a Spot Bitcoin ETF launching this yr to 75% following Grayscale’s victory in opposition to the SEC in August.

Amidst all these delays, the SEC is but to make a press release concerning the Grayscale’s software because the courtroom had ordered the Fee to assessment the appliance once more. Many anticipate the Fee to attraction the choice, with the deadline for an attraction coming in October.

Believable Causes For The SEC’s Early Delay

Many within the crypto group, together with Seyffart, had two main theories on why the SEC determined early on the ARK 21Shares Spot Bitcoin ETF software. One, they attributed it to the potential authorities shutdown that’s looming.

The SEC is anticipated to be affected if the US authorities companies have been to close down on October 1. The Fee should furlough 90% of its workforce and droop most of its actions. Nonetheless, it appears far-fetched contemplating that November 11 nonetheless appears far off, and authorities actions could have resumed by then.

The second main concept was that the letter that Congress despatched to the SEC Chair Gary Gensler may need struck the improper nerves, prompting the Fee to make such a call.

Within the letter, the congressmen urged the Fee to approve the pending Spot Bitcoin ETFs following the courtroom’s resolution within the Grayscale case, stating that the “SEC’s present posture is untenable transferring ahead.”