Yeah, considering the troubles we are in now, that would be the worst moment to accept it. For this reason, considering all can be worst by March 31st, the other ETF, SolidX will also be rejected I think.
There is no good or bad time for bitcoin to be approved by SEC. We are amidst scaling debate, so what?
Bitcoin cannot be regulated, it will be never ideal and totally valid asset to work as a fuel for ETFs.
Unless bitcoin will be castrated somehow it won't met regulatory laws created for FIAT based financial institutions.