SEC Postpones Bitcoin ETF Applications, Raising Concerns Among Investors
The Securities and Exchange Commission (SEC) has once again delayed the approval of Bitcoin exchange-traded fund (ETF) applications, causing alarm in the market. This decision comes after major firms like BlackRock, Fidelity, and VanEck entered the race to launch spot Bitcoin ETFs, creating a highly competitive environment.
According to Bloomberg, the ETF applications that were postponed by the SEC are now awaiting rejection, and one of them has already been rejected. This unexpected development has left investors perplexed and has raised significant concerns in the market.
Bloomberg’s update reveals that the spot Bitcoin ETFs are not merely under review, but awaiting rejection. The word Rejected at the top of the table indicates that at least one ETF has been rejected. It remains unclear why Bloomberg made this update and if all the applications are destined for rejection.
The race to launch spot Bitcoin ETFs began in June when BlackRock made its move, and it has been a focal point for the market ever since. The anticipation surrounding these ETFs played a crucial role in driving Bitcoin’s price above $30,000.
Unfortunately, the SEC’s repeated postponements have cast doubt on the likelihood of approval anytime soon. In fact, industry experts believe that we may not see a Bitcoin ETF approved before 2024. Franklin Templeton, managing assets worth $1.5 trillion, recently joined the race for a spot Bitcoin ETF, but its review process is expected to continue until November 17th. It is possible that the SEC might delay this ETF until 2024 as well.
Under the current rules, the SEC can delay ETF applications for up to 240 days, but it must eventually make a definitive decision. The uncertainty surrounding the fate of these spot Bitcoin ETFs has contributed to market concerns and could potentially impact the overall sentiment towards cryptocurrencies.
On a positive note, seven Ethereum Futures ETFs were launched in the United States today. While the initial trading volume of these ETFs was relatively low at $1.8 million, it is expected to grow in the coming days. Notably, ProShares’ Ethereum Futures ETF witnessed over $200 million in volume within the first 15 minutes of its release.
Among the Ethereum ETFs, Valkyrie’s ETF emerged as the leader on its debut day, followed closely by ProShares’ ETF. Another Ethereum ETF from ProShares ranked last in terms of trading volume. These ETFs collectively recorded a daily volume of $1,896,077.
The launch of Ethereum Futures ETFs presents an alternative investment opportunity for those interested in diversifying their cryptocurrency holdings. While the initial trading volume may not seem impressive compared to Bitcoin Futures ETFs, it is worth monitoring how these ETFs perform in the market.
Overall, the delay and potential rejection of spot Bitcoin ETF applications have brought about a sense of uncertainty among investors. The market eagerly awaits a definitive decision from the SEC, which will undoubtedly shape the future of cryptocurrency ETFs and impact the broader crypto market.
