- SEC, by accepting six applications for review, has initiated the first stage of the decision-making process to determine the fate of the highly anticipated spot BTC ETF.
- Although the securities regulator did not provide a definite timeline, it is highly likely that the agency could announce a decision on one of the applications today, August 11.
- If the regulatory agency approves, it could serve as a significant catalyst to push up the price of the leading cryptocurrency.
SEC Expected to Announce Decision on ARK Invest’s Spot Bitcoin ETF Today; Possible Scenarios for ETF and Bitcoin!
SEC Could Announce Decision on Bitcoin ETF Today
June witnessed a groundbreaking step as BlackRock, a leading financial power, along with five other traditional financial (TradFi) institutions, submitted applications to the U.S. Securities and Exchange Commission (SEC) to launch a spot Bitcoin exchange-traded fund (ETF).
This significant development reignited hopes in the crypto community for the potential institutional acceptance of Bitcoin (BTC). Shortly after, in July, the SEC accepted six applications for review, initiating the first stage of the decision-making process for the eagerly awaited spot BTC ETF.
Although the securities regulator did not provide a definite timeline, it is highly likely that the agency could announce a decision on one of the applications today, August 11. In particular, Bloomberg analyst James Seyffart revealed that the decision period for ARK Invest’s spot Bitcoin ETF is Sunday, August 13.
However, due to it being the last day before the weekend, Seyffart believes that the SEC will make the announcement after market close today. According to crypto expert Jelle, there are three possible scenarios regarding the expected August 11 announcement. The securities regulatory board “can delay their decisions, approve the ETF, or reject it,” he said. Seyffart stated that instead, he expects a “complete delay” from the SEC.
So, what does this mean for Bitcoin?
The expected announcement from the SEC regarding ARK Invest’s spot Bitcoin ETF application could have various effects on the price movement of BTC.
If the regulatory agency approves, it could serve as a significant catalyst to push up the price of the leading cryptocurrency. This positive decision would not only instill optimism for other institutional applications but also strengthen the overall possibilities for Bitcoin’s adoption in mainstream finance.
On the other hand, the least likely scenario, a complete rejection, could create some downward pressure on BTC. However, any downward movement is expected to be limited, considering the existence of five other pending spot Bitcoin ETF applications.
Alternatively, the SEC could prefer to delay its decision, which could have a relatively limited impact on the price of BTC. This scenario appears to be in line with historical regulatory trends.
In any case, the upcoming SEC decision has significant potential to reshape the price dynamics of BTC and the path of mainstream institutional adoption.
