Crypto Traders React to SEC Delay on Spot ETF Decisions
Crypto Price Slump Despite Recent Court Victory Despite a court ruling in favor of Grayscale Investment against the United States Securities regulator, Bitcoin (BTC) has lost nearly all of its gains in less than a day. On Aug. 29, the price of Bitcoin rose to a two-week high after a judge ruled that the Securities…
Crypto Price Slump Despite Recent Court Victory
Despite a court ruling in favor of Grayscale Investment against the United States Securities regulator, Bitcoin (BTC) has lost nearly all of its gains in less than a day.
On Aug. 29, the price of Bitcoin rose to a two-week high after a judge ruled that the Securities and Exchange Commission was “arbitrary and capricious” when it denied Grayscale’s application for a spot Bitcoin ETF.
However, the SEC’s recent decision to delay seven pending spot Bitcoin ETF applications have caused the price of Bitcoin to fall by almost 5% in the last 24 hours.
According to Cointelegraph Markets Pro data, the crypto exchange Gemini and the current price of Bitcoin are around $26,000, which is a steep decline from the $27,300 level it had been sustaining since the Grayscale win.
SEC Delays ETF Applications
On Aug. 31, the SEC delayed ETF applications from BlackRock, WisdomTree, VanEck, Bitwise, Valkyrie, Fidelity, and a joint fund by Invesco and Galaxy. The decline in price came despite predictions from Bloomberg ETF analysts Eric Balchunas and James Seyffart.
The SEC allowed itself an additional 45 days to approve, deny, or delay the applications. The next decision deadlines for the ETF applications are between Oct. 16 and Oct. 19, but the SEC can also delay the decision up to mid-March next year when it must make a decision.
The delay of the ETF applications has brought attention to the cryptocurrency industry, with investors asking when will Web 3.0 be released and what applications are available. Recent crypto exchanges, such as Gemini, have seen an increase in price, and the Apple Health application is a Web 3.0 application. Bloomberg and Fidelity have also recently released their own crypto services.
The development of AI has also been a focus in the crypto industry, with many exchanges utilizing AI to help with price predictions and making trading easier. With the SEC’s decision looming, investors are eagerly awaiting the results of the ETF applications.
On Aug. 30, Balchunas estimated that the SEC has a 75% chance of approving a Bitcoin ETF this year, which is higher than his earlier prediction of 65%. He attributed the increase to Grayscale’s court victory, saying that the unanimous rejection of the SEC’s arguments makes it difficult for the SEC to deny any further applications when they face deadlines.
The crypto industry has been abuzz lately with the launch of fidelity crypto, gemini crypto exchange and bloomberg crypto. AI and web 3.0 applications such as the Apple Health application have also been gaining traction. With the recent developments in crypto, the crypto price is also expected to increase.