Bitcoin ETF Approval Unlikely in 2023, Analyst Suggests
An analyst has cast doubt on the possibility of a Bitcoin Spot exchange-traded fund (ETF) being approved this year. This has dampened the optimism that emerged in the crypto industry after Grayscale’s recent legal victory against the US Securities and Exchange Commission (SEC).
The SEC has extended the deadline for its decision on seven ETF filings, causing a decline in investor anticipation and pushing the price of Bitcoin below $25,800.
Former Coinbase Director Predicts Unlikelihood of Bitcoin ETF Approval in 2023
Last week, Grayscale achieved a significant legal victory when Judge Neomi Rao ruled that the SEC was wrong to reject Grayscale’s application to convert its Grayscale Bitcoin Trust (GBTC) into a spot ETF. This news initially boosted market sentiment, driving the price of Bitcoin above $28,100. However, the SEC’s subsequent decision to extend the deadline for several ETF filings has resulted in a 1.1% decline in Bitcoin’s price, which is currently trading at $25,700.
In a recent interview with Yahoo Finance, Lory Kehoe, former director of the US-based crypto exchange Coinbase and head of Blockchain Ireland, expressed his belief that the approval of a Bitcoin Spot ETF is more likely to happen in 2024. Kehoe emphasized the importance of thorough analysis and due diligence throughout the year, highlighting that while the SEC considers media interest, it ultimately makes independent decisions.
The possibility of a spot Bitcoin ETF filing receiving SEC approval is gaining increased media attention. I believe the SEC takes this into account but is not afraid to make its own decisions.
However, Kehoe also stated that he is open to being proven wrong and seeing an ETF approval in 2023. He highlighted market manipulation as a critical consideration for the SEC. The regulator’s main focus is investor protection and financial oversight, and it closely examines whether the market meets its criteria for regular functioning. If the SEC determines that the Bitcoin market meets these criteria, a Bitcoin Spot ETF could be approved, marking a significant milestone for cryptocurrencies and Bitcoin.
Kehoe emphasized that the approval of a BTC ETF would have wide-ranging implications for Grayscale, its investors, and the broader crypto and asset management communities. It would provide increased accessibility and legitimacy to the digital asset market. However, the SEC remains cautious in its evaluation.
Hot Take: Bitcoin ETF Approval Unlikely in 2023, Market Manipulation a Key Factor
Despite the optimism sparked by Grayscale’s legal victory, it seems unlikely that a Bitcoin Spot ETF will be approved in 2023. The SEC’s decision to extend the deadlines for ETF filings has dampened investor anticipation and caused a decline in Bitcoin’s price. Market manipulation concerns play a significant role in the SEC’s evaluation, and its scrutiny of the Bitcoin market’s adherence to its criteria will ultimately determine the fate of an ETF. If approved, it would be a significant milestone for cryptocurrencies, boosting the market’s credibility and accessibility.
Featured image from iStock, chart from TradingView.com
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