Bitcoin ETF and Others: SEC's Decision Still Postponed!

The crypto community is eagerly awaiting the approval by the Securities and Exchange Commission (SEC) of several ETFs, potentially including the first ever Bitcoin spot ETF. Regarding the latter, for example, analysts have hinted that a decision should come by January 2024. The SEC has postponed its decision.

Is the SEC cautious about financial innovations related to cryptos?

A twist regarding the imminent intervention of an SEC decision on Bitcoin ETFs. The American financial regulator has, once again, postponed its decision regarding the approval of the first ever Bitcoin spot ETF.

The news is not entirely unexpected, as the SEC often takes its time when passing judgment on revolutionary financial products. However, it still prolongs the suspense despite growing speculation about an imminent approval.

In addition, the SEC has also delayed its decision on Hashdex. This is an asset manager that had requested the SEC in September, the conversion of its Bitcoin futures ETF into a spot ETF.

While it had until November 17 to make a decision, the financial regulator has indicated that its decision in this regard will wait until 2024. The US securities watchdog has not given a date for the decision to take place. The same goes for its decision regarding Grayscale’s initiative to launch a new ETF on Ethereum (ETH) futures contracts, which also has been postponed.

The SEC has again deferred making a decision on whether to approve the first US ETF that invests directly in Bitcoin https://t.co/Kj6hbVqYJ6 via @crypto

— Bill Singer (@brokeandbroker) November 15, 2023

Is the SEC maintaining uncertainty regarding Bitcoin ETFs?

Indeed, for analysts, this new postponement was almost predictable given the SEC’s track record on such financial matters. However, the situation does not fail to contribute to a climate of uncertainty regarding the approval of crypto ETFs in the United States.

Nevertheless, this new development doesn’t prevent the crypto market from showing resilience. For example, the price of bitcoin (BTC) has increased over the past 24 hours. Its valuation has risen by 4.29 %, reaching approximately $37,380.

This positive movement is not insignificant. It suggests that market participants remain optimistic about the eventual approval of financial products related to BTC. This, even as the SEC extends its evaluation period.

In a context where the crypto ecosystem continues to evolve, players in this market should remain attentive to regulatory developments. These could significantly impact the trajectory of the adoption of digital assets in traditional financial markets.