The Delay of Bitcoin ETF Approval Disheartens Market Players
The U.S. Securities and Exchange Commission (SEC) has yet to make a decision on the spot Bitcoin exchange-traded fund (ETF) filing of Ark Invest and 21Shares, leading to disappointment among market players in the crypto industry. The SEC recently extended the proceedings on the ETF application, pushing back the expected verdict to January 2024. This delay adds more uncertainties and frustration to the market, as Bitcoin ETFs are unlikely to launch by the end of 2023.
Key Points:
- Bitcoin ETF approval is still pending, causing disappointment in the market.
- The SEC has the authority to delay ETF applications for up to 240 days.
- Altcoin prices are mostly in decline, while a few show minor increases.
- The bitcoin derivatives market indicates neutral sentiment.
- Optimism remains as the SEC potentially edges closer to approving a spot ETF.
If approved, a Bitcoin ETF could open up new opportunities for investors seeking exposure to digital assets. BlackRock, the world’s largest asset management firm, has submitted its Bitcoin ETF application and has gained traction by partnering with Coinbase to enhance transparency and market surveillance. ARK Invest is also among the entities with a pending cryptocurrency ETF application. However, the final decision is not being rushed, and the roles of the SEC and CFTC in regulating digital assets are still being discussed.
Hot Take:
The delay in Bitcoin ETF approval is disheartening for market players, but there is still optimism that the SEC will eventually provide the long-awaited approval. A spot Bitcoin ETF would grant investors an accessible avenue to gain exposure to Bitcoin’s potential without directly purchasing and storing the cryptocurrency. While the exact timing of when an ETF product will come to US markets is uncertain, it is expected to happen in the future.
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