SEC Delays Decision on Bitcoin ETFs: Market Reacts Negatively

From the Digifinex blog.

Multiple Bitcoin Spot ETFs Delayed

The U.S. Securities and Exchange Commission (SEC) announced on Thursday that it is delaying decisions on Bitcoin ETF proposals from BlackRock, Fidelity, Bitwise, VanEck, WisdomTree, Invesco, and Valkyrie. The news caused Bitcoin prices to drop sharply.

Next Review Dates Announced

Following the postponement of the ARK 21Shares Bitcoin ETF, the review timelines for these seven additional Bitcoin Spot ETF applications have also been extended. The next review dates are set between October 16 and 19.

(Image via TokenInsight

SEC’s Reasoning for the Delay

The SEC stated that a longer period is appropriate for taking action on the proposed rule changes, allowing ample time to consider the proposals and any concerns raised.

Pre-Existing Market Expectations

Prior to this, market analysts, including Bloomberg ETF analyst Eric Balchunas, had been optimistic about a Bitcoin ETF approval, raising the chances to 75% by the end of this year (and 95% by the end of next year), especially following Grayscale’s legal win against the SEC.

(Image via TradingView

Immediate Market Fallout

After the announcement, Bitcoin prices plummeted from around $27,498 to a low of $25,683, a 24-hour decline of 5.01%. Ethereum followed suit, dropping by 3.50% in 24 hours to the current price of $1,649.

Keywords: SEC, U.S. Securities and Exchange Commission, Bitcoin, BlackRock, Fidelity, Bitwise, VanEck, WisdomTree, Invesco, Valkyrie, ETF, Eric Balchunas, Grayscale, Market Reaction, Cryptocurrency

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