SEC Delays Review of Seven Bitcoin ETFs, Bitcoin Falls Nearly 5%

The U.S. Securities and Exchange Commission (SEC) announced on Thursday that it will delay its decision on the proposed spot Bitcoin ETFs from BlackRock, Vanguard, Fidelity, Bitwise, VanEck, WisdomTree, Invesco, and Valkyrie. Bitcoin tumbled on the news, dropping to a low of 25,655, with a 4.98% decrease in the past 24 hours.

Seven Bitcoin Spot ETFs Delayed Simultaneously

Following the delay of the ARK 21Shares Bitcoin ETF submitted by Ark Investment and 21Shares for review, applications for seven other Bitcoin spot ETFs were also granted an extension of the deadline yesterday, with the next review dates scheduled between October 16th and 19th.

The SEC considers it appropriate to designate a longer period for taking action on the proposed rule change to ensure there is sufficient time to consider the proposed rule change and the issues raised therein.

Prior to this announcement, the market generally anticipated that the SEC would further delay the review of Bitcoin spot ETFs. Following the victory in the lawsuit between Grayscale and the SEC, Bloomberg ETF analyst Eric Balchunas has raised his prediction probability of a Bitcoin spot ETF approval by the end of this year to 75% and by the end of next year to 95%.

Bitcoin Plummets in Response

Following the news, Bitcoin plummeted from around 27,587 to a low of 25,655, with a 4.98% decrease in 24 hours. Ethereum also fell in sync, with a 3.44% decrease in 24 hours, trading at $1,645 before the deadline.