Bitcoin traders wipe Grayscale gains after SEC delays spot ETF decisions
In less than a day, Bitcoin (BTC) has shed nearly all the gains it made from Grayscale Investment’s court victory against the United States Securities regulator.
On Aug. 29, Bitcoin popped to a two-week high after a judge ruled that the Securities and Exchange Commission was “arbitrary and capricious” when it rejected Grayscale’s spot Bitcoin ETF application.
However, the SEC’s Aug. 31 decision to delay seven pending spot Bitcoin ETF applications sent Bitcoin’s price downward — falling nearly 5% in the 24 hours to 12 am UTC Sep. 1.
Cointelegraph Markets Pro data showed Bitcoin’s price at around $26,000, falling steeply from around the $27,300 level it had been sustaining since the Grayscale win.
Spot Bitcoin ETF applications from BlackRock, WisdomTree, VanEck, Bitwise, Valkyrie and Fidelity, along with a joint fund application by Invesco and Galaxy, were all delayed by the SEC.
The price decline came even though some experts, including Bloomberg ETF analysts Eric Balchunas and James Seyffart, had expected the delays to take place, .
We’ve now fully retraced back to pre SEC Grayscale Lawsuit Bitcoin price.
Pretty much sums up where the markets at right now. pic.twitter.com/PS4T12uHFh
— Ben Simpson (@bensimpsonau) August 31, 2023
The SEC’s delay gives it another 45 days to approve, deny or again delay the applications.
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The next decision deadlines for the ETF applications are between Oct. 16 and Oct. 19, though the SEC could choose to delay the decision again, up to around mid-March of next year, when it will be forced to make a decision.
However, Balchunas said on Aug. 30 that the probability of the SEC approving a spot Bitcoin ETF this year was 75% — up from an earlier prediction of 65%.
He pinned the probability hike on Grayscale’s court win saying the judge’s unanimous rejection of the SEC’s arguments means it “will struggle to justify further denials as it faces deadlines.”
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