Fans of Bitcoin have been eagerly anticipating the green light for a BTC ETF – but it appears they will have to be patient a while longer.Thank you for reading this post, don't forget to subscribe!
Last week, the value of Bitcoin exceeded $37,000 – reaching an 18-month peak – following reports that the US Securities and Exchange Commission had an eight-day opportunity to endorse all spot crypto exchange-listed product requests. Investors were swift to interpret this information as a possible sign of an impending spot Bitcoin ETF.
However, that timeframe has now expired and the much awaited crypto opportunity is yet to materialize. Instead, the SEC is likely to postpone the decision on the pending applications, an action it has taken multiple times before, and review them in the upcoming year.
Today, the SEC delayed the endorsement of the spot Bitcoin ETF from GlobalX, originally due for approval on November 21st. Just earlier this week, the Commission postponed an application from Hashdex as well. Additional delays are anticipated today, including an application from Franklin Templeton for a Bitcoin investment product.
The primary financial regulator of Wall Street has a backlog of applications for a Bitcoin ETF from various conventional finance giants, such as BlackRock, VanEck, and WisdomTree. Should this investment opportunity get the green light, purchasers would be able to gain exposure to BTC without the necessity to acquire and secure the digital asset.
Observers of the market have long believed that such a product would unleash a flood of investments from Wall Street, resulting in a significant influx of funds into crypto markets. Analysts specializing in blockchain data at CryptoQuant suggest that this could amount to $1 trillion in Bitcoin and other digital assets.
The first request for a Bitcoin ETF was submitted a decade ago, yet the SEC has been hesitant to give the go-ahead, often citing potential market manipulation as the primary risk factor.
However, the entry of BlackRock, the largest asset manager in the world, into these negotiations has altered the forecasts. After BlackRock startled the crypto world by applying for a Bitcoin ETF in June, analysts now believe that the market is closer than ever to seeing a Bitcoin ETF in the United States.
Analysts from Bloomberg Intelligence state that there is a 90% likelihood that one will be approved by January.
Whether this forecast will prove accurate remains to be seen – but the likelihood of approval today is exceedingly low.
The author’s views and opinions are strictly for informational purposes and are not equivalent to financial, investment or other counsel.