BlackRock Bitcoin ETF Continues To Be Delayed By The SEC For Further Investigation

Key Points:

• SEC tightens oversight of major companies’ Bitcoin initiatives.
• BlackRock Bitcoin ETF application is eagerly anticipated in this evolving regulatory landscape.
• Bitcoin ETF approvals face delays amid concerns about a government shutdown.

The US Securities and Exchange Commission (SEC) is taking additional steps to scrutinize spot Bitcoin ETFs from major firms like BlackRock, Invesco, Valkyrie, and Bitwise.

SEC Intensifies Scrutiny on BlackRock Bitcoin ETF

This move follows the SEC’s decision to commence related proceedings due to the legal and policy concerns raised by proposed rule changes. It’s crucial to note that these proceedings don’t signify the SEC’s conclusions on these matters.

In a recent filing involving Valkyrie, the SEC solicited comments on a proposed shared custody agreement with cryptocurrency exchange Coinbase. The goal is to enhance fraud and manipulation detection, investigation, and deterrence. Commentators have a 21-day window to submit their input, followed by 35 days for rebuttals, suggesting that the approval process will span several more months.

Simultaneously, the SEC has introduced corresponding procedures for Bitwise Bitcoin ETP Trust, Invesco Galaxy Bitcoin ETF, and BlackRock’s iShares Bitcoin Trust. Notably, the SEC has postponed a decision on the ARK 21Shares Bitcoin spot ETF until January of next year, extending the deadline for hopefuls in the cryptocurrency fund industry.

Bitcoin ETF Approval Delays Amidst Government Shutdown Concerns

James Seyffart from Bloomberg suggested that these delays are an effort to pre-empt a potential government shutdown, which would leave the SEC with minimal staffing. Among the applications, BlackRock Bitcoin ETF’s stands out as the most anticipated, given the $9 trillion asset manager’s track record of SEC approvals.

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