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The U.S. Securities and Exchange Commission (SEC) has once again postponed its decisions on several crypto spot exchange-traded funds (ETFs), keeping investors and institutions waiting for regulatory clarity. The delay extends the uncertainty surrounding spot Bitcoin and Ethereum ETFs, which many see as a key milestone for mainstream adoption of digital assets.
What’s Behind the Delay?
The SEC cited the need for additional time to review proposals, as it continues evaluating:
- Market manipulation risks in the crypto sector.
- Investor protection measures proposed by ETF applicants.
- Liquidity and custody concerns related to spot crypto holdings.
While the agency has approved Bitcoin futures ETFs, it remains hesitant to greenlight spot ETFs, arguing that the crypto market still lacks sufficient surveillance and fraud prevention measures.
Which ETFs Are Affected?
The latest postponement impacts applications from several major financial institutions, including:
- BlackRock
- Fidelity
- Grayscale (converting GBTC to a spot Bitcoin ETF)
- ARK 21Shares
- VanEck
These firms have been actively pushing for spot ETF approval, arguing that their proposals include robust safeguards against market manipulation.
Market Reaction & Industry Response
Following the delay, Bitcoin and Ethereum prices saw slight downward pressure, as investors reacted to the continued regulatory uncertainty. Many industry leaders, including Grayscale and Coinbase, have criticized the SEC’s stance, arguing that the lack of a spot ETF disadvantages U.S. investors compared to global markets, where similar products have been approved.
Meanwhile, BlackRock and Fidelity remain optimistic about eventual approval, with analysts suggesting that the SEC is buying time to establish a clearer regulatory framework for crypto assets.
What’s Next?
The SEC’s next decision deadlines are expected in the coming months, with many analysts predicting that final approvals could come in late 2024 or early 2025. However, if the delays continue, legal challenges from ETF applicants could pressure the SEC into making a definitive ruling sooner.
While the latest delay is frustrating for crypto advocates, it underscores the SEC’s cautious approach to digital asset regulation. As institutional demand for spot ETFs grows, the pressure on regulators to provide clear guidelines will only increase. Whether the SEC ultimately approves these ETFs remains to be seen, but one thing is clear—the fight for crypto ETF approval is far from over.
