Key Takeaways:
- Bitcoin ETFs gain significant attention in the crypto community, with optimism from key figures like Cathie Wood and Crypto Rover.
- Regulatory hurdles have been addressed, with Nasdaq and CBOE proposing surveillance solutions.
- Market factors, including regulatory changes and Bitcoin halving, influence price amid ETF anticipation.
Bitcoin ETFs (Exchange- Traded Funds) approval is the new hype in the crypto-sphere. As the events leading up to the approval continue to develop, one should pay heed to how events shall unfold. Previously, we have seen Cathie Wood from Ark Invest being optimistic about the SEC’s acceptance of BTC’s ETF. Moreover, we also saw crypto analyst Crypto Rover highlight BlackRock as the potential pioneer of Spot Bitcoin ETF approval. Now, let us take a deeper look at the details.
Explaining the Bitcoin ETF Concept
A Bitcoin ETF is basically a financial product that tracks the price of Bitcoin. It allows investors to gain exposure to BTC’s price movements without actually owning a cryptocurrency. In the past, there have been certain hurdles that BTC ETF has had to go through in order to reach this point of approval. Let us take a look at how things have evolved ever since.
On July 19, 2023, the SEC accepted applications from six firms, including BlackRock, Bitwise, VanEck, WisdomTree, Fidelity, and Invesco, to create spot BTC ETFs for review. These applications marked the first step in the SEC’s decision-making process. Previously, the SEC had rejected many spot BTC ETF proposals, citing concerns about anti-fraud and investor protection standards.
In relation to the SEC’s statement, Nasdaq announced plans to address these concerns by collaborating with Coinbase to monitor trading in the underlying BTC’s market, potentially addressing the SEC’s reservations about spot BTC ETFs. CBOE Global Markets also proposed a similar surveillance arrangement.
Following their statements, on August 11, 2023, the SEC announced a delay in its decision on Cathie Wood-led Ark Investment Management’s spot Bitcoin ETF application. The SEC announced that it was seeking public comments and may delay the decision for several weeks to months, which was initially due by August 13.
Moving forward, on August 30, 2023, a federal appeals court in the U.S. ruled that the U.S. Securities and Exchange Commission (SEC) was wrong in its decision to reject Grayscale Investment’s application to create a spot BTC ETF. This decision was thought to be a landmark one as it was deemed to pave the way for the first-ever ETF.
On September 1, 2023, the SEC announced a delay in approving spot BTC ETFs from Invesco, WisdomTree, and Valkyrie until mid-October. However, the delay could be potentially longer. The initial decision date, however, was set for the following week. Jay Clayton, the former SEC Chair, also stated that approval of a spot Bitcoin ETF is inevitable, indicating growing anticipation and optimism within the industry for such a product’s approval.
Keeping in mind these recent developments, it is anticipated that there is a growing interest in and potential approval of spot Bitcoin ETFs in the U.S., which could significantly impact the cryptocurrency market and investment landscape.
The Bullish Sentiment
Given the recent circumstances, it is clear that investor confidence is growing. Much is clear about the potential of ETF approval, given these tweets by Crypto Rover, a prominent analyst. As per him, if the Bitcoin price drops further, ETFs will be approved sooner rather than later.
Market Factors
In all this chaos, it is important to note that Bitcoin’s price is being influenced by regulatory changes, macroeconomic conditions, and technological developments. Moreover, ETF approval is also going to play a crucial role in BTC’s price. Moreover, it is important to note that the recent regulatory scrutiny on Binance in the U.S. is also pivotal for the drop in BTC’s price. Moreover, readers should also remember that other than the pending approval of ETF, BTC halving is approaching in 2024. The halving could lead to a bullish trend in the future.
All in all, given the potential approval of spot Bitcoin ETF, one is left wondering whether the price for BTC will fall or rise. Given these notions, investors are advised to stay vigilant of the crypto market and how it may turn out in the future.
Source