The US Securities and Exchange Commission pushes the Bitcoin ETF decision to late 2023, impacting the trajectory of Bitcoin and other major cryptocurrencies.
Dive into the details and potential market implications of this pivotal move.
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SEC Postpones Approval Process until Mid-October 2023
The US Securities and Exchange Commission (SEC) has decided to extend the review period for all seven applications related to physical Bitcoin ETFs until October.
The following seven firms' physical Bitcoin ETFs have been affected.
A standard 45-day window is typically allocated for approval, denial, or postponement decisions. Hence, the extension pushes the timeline to mid-October 2023:
- BlackRock
- WisdomTree
- Invesco Galaxy
- Wise Origin
- VanEck
- Bitwise
- Valkyrie
It's worth noting that from the start of the review, the SEC has a 240-day period to deliver its final verdict on approval or rejection.
Given that the SEC has used this full duration in the past, this delay was anticipated within the cryptocurrency industry.
Although the current reports suggest a postponement "until mid-October 2023", the SEC can utilize the full 240-day window.
Consequently, the ultimate verdict on the hotly debated physical Bitcoin ETFs is expected around January to March 2024.
Cryptocurrency Prices Drop Back to Pre-Surge Levels
On August 29, 2023, news broke out that Grayscale had won a lawsuit against the SEC concerning the Bitcoin ETF. This news triggered a surge in major cryptocurrency prices.
However, in light of this recent announcement about the delay, many cryptocurrencies have reverted back to their pre-surge price levels.
Physical Bitcoin ETF approvals are perceived as one of the critical elements that might lead to a rise in cryptocurrency prices.
Nonetheless, with the present context, many predict a short-term drop in BTC prices, with forecasts ranging between $23,000 and $25,000.
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