US Regulators Again Delay Bitcoin ETF Submission From BlackRock

BlackRock's Bitcoin ETF submission was postponed by regulators. (Photo; Doc. Coincholik)

JAKARTA - The United States Securities and Stock Exchange (SEC) Commission recently announced a postponement in decision-making regarding a number of Bitcoin ETF submission proposals, just days after announcing the postponement of a decision regarding the Bitcoin ETF from Ark 21Shares and GlobalX until January.

The decision to postpone announced on Thursday, September 28, relates to the Bitcoin ETF proposals from BlackRock, Valkyrie, and Bitwise. Earlier, on August 31, the SEC had announced its first delay in this ETF proposal.

On Wednesday, September 27, the SEC also postponed a decision regarding the Bitcoin ETF proposal from Hashdex which should have been announced on October 6.

According to James Seyffart of Bloomberg, these delays were carried out by the SEC to anticipate a possible closure of the government that could occur. In a hearing in Washington DC this week, SEC Chair Gary Gensler expressed concern that in the event of a government closure, the SEC would operate with very limited employees.

One of the most anticipated Bitcoin ETF submissions is BlackRock. With total assets worth 9 trillion US dollars (equivalent to Rp139 quadrillion), BlackRock has an impressive history of obtaining approval from the SEC. Eric Balchunas and Seyffart of Bloomberg even noted that the SEC's approval ratio to BlackRock reached around 575-1.

Prior to the announcement of the second delay, many Bitcoin ETF proposals had time limits for decision making in mid-October. However, as previously reported by Blockworks, experts in the industry have stressed that the SEC has the authority to delay its decision until the end of the 240-day deadline.

These delays have raised the question of whether the SEC plans to appeal a decision related to Grayscale. Previously, a group of judges supported Grayscale and asked the SEC to review the Grayscale app to convert Bitcoin Trust (GBTC) into ETF.

As Blockworks has explained, there is a 45-day time window since August 29 for the SEC to appeal against the decision. If so, then the deadline for filing an appeal will fall on October 13.

Despite the decision regarding Bitcoin ETF to face a continuing delay, the SEC is moving forward with plans regarding Ethereum Ethereum's futures.