NYDIG, a financial services firm focused on Bitcoin (BTC), predicted that the US government could face a shutdown ranging from 1-5 days to 16-35 days.
This has led the U.S. Securities and Exchange Commission (SEC) to delay decisions regarding most Exchange Traded Funds (ETFs). The SEC is expected to make a decision on the Bitcoin spot ETF before January 10, 2024.
The politicization of U.S. finances has credit rating agencies concerned, which could impact overall financial markets, according to NYDIG analysts. Spot Bitcoin ETF will have to wait until SEC employees return from a potential leave period.
The SEC has instituted decision delays for most ETFs, including those with evaluation deadlines dating back to November. This includes BlackRock's widely followed iShares Bitcoin Trust. This suggests that the SEC is preparing for a potential long-term shutdown and aims to provide itself with maximum flexibility in the approval process.
Ultimately, the SEC will have to decide on all spot Bitcoin ETFs by January 10, 2024. This deadline is important as it relates to the Ark 21Shares product, which has the earliest final decision date. It's possible the SEC will take a consistent approach for all ETFs in the process, avoid favoritism, and approve or reject them all at once.
NYDIG analysts also announced the dates to watch on the subject in October:
- 12 October – US CPI data for September
- October 13 – Deadline to file SEC appeal in Grayscale case
- October 27 – CME expiry
- November 1 – FOMC interest rate decision
- January 10 – Final ETF decision date for the first spot Bitcoin ETF, Ark 21Shares
*This is not investment advice.