The SEC’s Delay on Bitcoin ETF Filings
The recent filing by the U.S. Securities and Exchange Commission (SEC) has caused a pause in the crypto rally. However, this outcome was expected, as crypto investors have been consistently facing challenges from the SEC. It is important for crypto readers to understand that the SEC will never be favorable towards crypto projects.
Key Points:
- The SEC has delayed the decision on seven spot Bitcoin ETF filings from BlackRock, WisdomTree, VanEck, Invesco Galaxy, Bitwise, Valkyrie, and Fidelity.
- The regulators have designated a longer review period and have until October 19, 2023, to decide on the proposed rule changes.
- Grayscale’s application to convert its Bitcoin Trust Investment to a spot Bitcoin ETF is now in the spotlight after a court ruling required the SEC to review the proposal.
- The crypto market initially reacted bullishly to the court’s decision, but the rally lost steam after the SEC’s delay, resulting in a decline in Bitcoin’s price.
- Bloomberg’s ETF experts have raised the odds of potential Bitcoin ETF approvals from 65% to 75%, considering Grayscale’s victory and the pressure on SEC Chair Gary Gensler.
Hot Take:
Despite the SEC’s antagonism towards cryptos, investors should still expect to see continued interest in cryptocurrencies. The broken Western financial system and the growing demand for alternative assets will eventually push the SEC to approve Bitcoin ETFs. Experts believe that the acceptance rate of a spot Bitcoin ETF could reach 75% by the end of 2024. This approval would bridge the gap between crypto and the mainstream, allowing traditional finance capital to flow into cryptocurrencies.
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