Crypto analysts bullish as SEC delays spot Bitcoin ETF verdict for BlackRock, Invesco, Bitwise.

Crypto analysts bullish as SEC delays spot Bitcoin ETF verdict for BlackRock, Invesco, Bitwise.

The Looming Decision: SEC Postpones Spot Bitcoin ETFs

The United States Securities and Exchange Commission (SEC) has once again delayed its decision on several proposals for spot Bitcoin exchange-traded funds (ETFs), including applications from major crypto players such as BlackRock and Invesco. This unexpected turn of events, occurring two weeks ahead of schedule, has sparked serious discussions among analysts.

The delay can be attributed to the looming possibility of a US government shutdown, set to take effect on October 1 if essential funding bills fail to garner Congressional approval. In the event of a shutdown, the operations of the nation’s financial regulatory bodies and other federal agencies would be disrupted. The avoidance of a shutdown relies on Congress successfully passing 12 distinct full-year funding bills before the October 1 deadline.

This recent postponement by the SEC adds another chapter to the series of delays, reminiscent of setbacks that occurred back in late August after the initial deadline.

Market Optimism Amid Spot BTC ETF Decision Delay by the SEC

Financial experts maintain a positive outlook on the chances of a Bitcoin ETF being approved, as well as the future of the market in general, despite the current regulatory uncertainty. Bloomberg analysts James Seyffart and Eric Balchuna predict a 95% chance of a spot Bitcoin ETF being approved by the end of 2024, an increase from the previous 75% likelihood for this year. This optimistic projection stems from a notable court decision in Grayscale’s favor, which hinted at a potential shift in regulatory sentiment.

As further validation, the respected crypto analyst known as Crypto Rover shares the conviction that the SEC’s approval of a Bitcoin spot ETF is inevitable. He points to Grayscale’s recent legal victory against the SEC as a pivotal factor supporting his stance. Additionally, he expects that, despite the official application deadline set for January 10, 2024, approval for the spot BTC ETF may happen ahead of schedule. In his words, “It’s likely that they would approve all of them at once. They wouldn’t just accept BlackRock’s and deny the rest.”

The Market Anticipates the Ultimate Decision

While various speculations and beliefs surround the SEC’s decision, the ultimate choice still rests in the hands of the regulatory body. However, a compelling argument can be made that the SEC may find itself with little choice but to grant approval, particularly given that the companies involved have diligently adhered to the commission’s stipulated requirements. Moreover, mounting accusations of being anti-crypto further intensify the pressure.

The entire cryptocurrency market is eagerly awaiting the SEC’s decision, recognizing its potential impact on the industry. The outcome may reshape the future of Bitcoin and other digital assets while influencing investor sentiment. As the sector braces for this critical juncture, all eyes are focused on the impending decision, which has the power to reshape the industry completely.

With the SEC once again postponing its decision on multiple proposals for spot Bitcoin ETFs, including applications from prominent players like BlackRock and Invesco, the blockchain industry finds itself at a crucial crossroads. This unexpected move by the regulatory body has triggered discussions among analysts and raised concerns about the future of the market.

The delay can be attributed, in part, to the looming possibility of a government shutdown in the United States. If essential funding bills fail to garner Congressional approval before October 1, a shutdown could occur, disrupting the operations of financial regulatory bodies and federal agencies. The SEC’s decision delay is a precautionary measure in light of this uncertain scenario.

These setbacks in the evaluation of spot Bitcoin ETFs are not isolated incidents. In late August, the SEC faced similar delays after the initial deadline. This recurring pattern raises questions about the efficiency and predictability of the regulatory process. Nevertheless, market experts remain optimistic, holding a positive outlook on the chances of Bitcoin ETFs being approved and the future of the industry as a whole.

Bloomberg analysts, James Seyffart and Eric Balchuna, project a high probability of a spot Bitcoin ETF gaining approval by the end of 2024. They have increased their estimate from 75% to 95%, primarily due to a court decision in favor of Grayscale. This legal victory hints at a potential shift in regulatory sentiment towards cryptocurrencies.

Supporting this optimistic projection is Crypto Rover, a respected crypto analyst. He believes that the SEC’s approval of a Bitcoin spot ETF is inevitable. In addition to the Grayscale ruling, he points out that all the companies applying for spot BTC ETFs have met the commission’s requirements. He further suggests the possibility of the SEC approving all the applications simultaneously, rather than accepting one while denying others.

The market is eagerly anticipating the SEC’s ultimate decision on spot Bitcoin ETFs, recognizing its significant potential impact. This decision will not only determine the fate of specific ETF proposals but also shape the trajectory of Bitcoin and other digital assets as well as investor sentiment towards them.

While the ultimate choice rests in the hands of the SEC, pressure is mounting on the regulatory body to grant approval. Companies involved in the proposals have diligently complied with the commission’s requirements, compelling the SEC to seriously consider their applications. Additionally, mounting accusations of anti-crypto sentiment directed towards the SEC further intensify the pressure to approve the ETFs.

As the industry braces for this critical juncture, the spotlight is solely on the SEC’s impending decision. The outcome has the potential to reshape the future of the blockchain industry entirely. Will it open the floodgates for further institutional involvement, or will it reinforce existing skepticism? The market awaits the SEC’s judgment as it prepares for a potentially transformative period.

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