- Bitcoin fell more than 4% to $26,000 as the SEC extended the decision-making period for BlackRock, WisdomTree, Invesco, Fidelity, Valkyrie, VanEck, and Bitwise’s ETF applications.
- Following this extension, the SEC will have an additional 45 days to review, approve, reject, or defer its decision on these applications. The regulator has a maximum of 240 days to approve or disapprove these applications.
- The SEC’s decision to defer these applications indicates that it is not yet ready to backtrack and suggests that resistance to approving a Spot Bitcoin ETF may continue.
The U.S. Securities and Exchange Commission responds to pending Bitcoin ETF applications from 7 companies; what’s next for Bitcoin?
SEC Announces Decision on 7 Spot ETF Applications
On August 29, Bitcoin rose to $28,000 following Grayscale’s victory. However, Bitcoin lost these gains when the U.S. Securities and Exchange Commission (SEC) decided to extend the decision-making period for 7 Spot ETF applications.
Bitcoin fell more than 4% to $26,000 as the SEC extended the decision-making period for BlackRock, WisdomTree, Invesco, Fidelity, Valkyrie, VanEck, and Bitwise’s ETF applications, even dropping below $25,700.
This price movement came contrary to the positive reaction of the cryptocurrency when it won against the asset manager in the U.S. Court of Appeals. Many were expecting the SEC to approve these ETF applications following Grayscale’s victory and hoped that the legal loss would convince the regulator to approve these applications.
However, Bloomberg ETF analyst Eric Balchunas had previously stated that he would not be surprised if the SEC deferred these applications. According to him, these timelines are likely not too significant because the SEC is likely to eventually be “willing” to approve these applications, and we will eventually see the approval of these applications.
Following this extension, the SEC will have an additional 45 days to review, approve, reject, or defer its decision on these applications. The regulator has a maximum of 240 days to approve or disapprove these applications. However, there are also several important deadlines among them.
What Will Happen to BTC?
Many consider the approval of a Spot Bitcoin ETF as one of the significant events that could lead to a significant increase in Bitcoin’s price (as we saw the market reaction following Grayscale’s victory). However, the SEC’s decision to defer these applications indicates that it is not yet ready to backtrack and suggests that resistance to approving a Spot Bitcoin ETF may continue.
While the approval of a Spot Bitcoin ETF remains uncertain, it is predicted that Bitcoin may remain in the red throughout this month. Historical data shows that September is known to be a bearish month for Bitcoin’s price, as the digital asset has often closed in the red at the end of September.
Meanwhile, October looks more promising as Bloomberg analyst James Seyffart noted that the next deadline for ETF applications is in October. Additionally, the launch of Ethereum Futures ETFs is expected in October, which could be a significant support for the market.
However, analysts do not expect Bitcoin to reach new highs this year as they predict Bitcoin may consolidate between $25,000 and $32,000 for the remainder of the year.
