Such measure, which affects the applications of major crypto players such as BlackRock and Invesco, has caused serious discussions among analysts.
Eric Balchuna says that by the end of 2024, there is a 95% chance that a Bitcoin spot ETF will be approved, up from a 75% chance this year.
The United States Securities and Exchange Commission (SEC) has once again postponed its decision on multiple Bitcoin spot exchange-traded fund (ETF) proposals. The turn of events occurred two weeks earlier than expected.
Thus, the SEC continues its practice of delaying the review of Bitcoin spot ETF applications, despite members of Congress this week publicly asking it to approve them due to the court ruling in the Grayscale case.
This delay can be attributed to the looming possibility of a US government shutdown, scheduled to take effect on October 1, should essential funding bills fail to win approval from Congress.
Such a shutdown would inevitably disrupt the operations of the country’s financial regulators and other federal agencies. Their avoidance depends solely on Congress successfully passing 12 separate full-year funding bills before the Oct. 1 deadline.
This recent delay marks another chapter in recurring postponements by the SEC, bringing back a previous round of setbacks that occurred in late August after the first deadline.
Market Optimism Amid Delay in SEC Decision on BTC Spot ETF
Financial experts continue to have a positive outlook on the chances of a Bitcoin ETF being approved, as well as the future of the broader market, despite the current regulatory uncertainty.
Notably, Bloomberg analysts James Seyffart and Eric Balchuna claim that by the end of 2024, there is a 95% chance that a Bitcoin spot ETF will be approved, up from a 75% chance this year. A notable court decision in favor of Grayscale, which hinted at a possible shift in regulatory sentiment, is what led to this optimistic projection.
Likewise, the respected crypto analyst known as Crypto Rover shares the conviction that SEC approval of the Bitcoin spot ETF is inevitable. He also cites Grayscale’s recent legal victory against the SEC as a key factor supporting his stance.
Furthermore, he anticipates that despite the official application deadline set for January 10, 2024, the approval of the BTC spot ETF may materialize sooner than expected. In his words:
“If the SEC decides to approve an ETF, it’s probable they would give the green light to all of them at once. They wouldn’t approve BlackRock’s alone and reject the others.”
The Market Anticipates Final Decision
Despite the numerous speculations and beliefs, the final decision is still in the hands of the SEC. 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 complied with the requirements stipulated by the commission.
Additionally, growing accusations of being against cryptocurrencies further intensify the pressure. The cryptocurrency market is eagerly awaiting the SEC’s decision.
The final choice can have a significant impact on the market, possibly changing the course of Bitcoin and other digital assets while affecting investor sentiment. One thing is certain as the sector prepares for this critical juncture: all market attention is focused on the impending SEC decision, which has the potential to completely reshape the future of the industry.
By Leonardo Pérez
