The United States Securities and Exchange Commission (SEC) has announced a delay in its decision on several proposals for spot Bitcoin exchange-traded funds (ETFs). The affected applicants include financial giants like BlackRock, Invesco, Bitwise, and Valkyrie.

SEC Postpones Review of Bitcoin ETF Proposals

The SEC's decision to postpone the review process occurred two weeks ahead of the scheduled second deadline. It was originally arranged for October 16-19. Analysts suggest that these delays are directly tied to the looming threat of a government shutdown in the United States. It is expected to occur on October 1 if Congress fails to pass the necessary funding bills.

The ongoing deadlock in Congress over these bills has created a unstable situation for federal agencies, including the SEC. Bloomberg ETF analyst James Seyffart anticipated that similar delays will impact applications from Fidelity, VanEck, and WisdomTree.

BREAKING: 🇺🇸 BlackRock Spot #Bitcoin ETF decision was just delayed by SEC.

Gary gonna get a phone call... 😅 pic.twitter.com/AXc6CMbmqD

— Bitcoin Archive (@BTC_Archive) September 28, 2023

SEC's Ultimatum: Mid-March Deadline for Bitcoin ETF Decisions

In late August, the SEC already delayed a group of spot Bitcoin ETF applicants as the initial cutoff point approached. The affected companies are now facing a third set of deadlines around mid-January, which could potentially be extended as well. The SEC's ultimate decision on the ETFs must be made by mid-March at the very latest.

Eric Balchunas, an ETF analyst at Bloomberg, has revised his predictions for the approval of a spot Bitcoin ETF. In late August, he estimated a 75% probability of approval by the end of 2023, which is up from an earlier estimate of 65%. Balchunas attributed this increased likelihood to the U.S. Court of Appeals Circuit's decisive ruling in favor of Grayscale in its legal battle against the SEC.

Balchunas has now raised his odds to a staggering 95% for approval by the end of 2024. This latest delay by the SEC may be seen as a sign that regulatory clarity and approval for spot Bitcoin ETFs in the United States is increasingly likely in the near future.

Market participants and cryptocurrency investors will continue to watch closely as developments unfold in both the SEC's decision-making process and the ongoing negotiations in Congress. It has the potential to significantly impact the fate of these highly anticipated Bitcoin ETFs.