- The SEC delayed decisions on a host of Bitcoin ETF applications last night, including BlackRock and Fidelity.
- Crypto trading firm QCP Capital said prices could dip into the end of the year and pick up next March – when an ETF may be approved.
Happy Friday!
The US Securities and Exchange Commission delayed decisions on several spot Bitcoin exchange-traded fund applications late Thursday. The delays were expected and largely procedural so early in the application process. Crypto trading firm QCP Capital now sees March as the important date.
Let’s dig in.
Delays ahead
The SEC decided to delay several decisions on spot Bitcoin ETFs Thursday evening. Most analysts expected this as these were merely the first deadlines 45 days after filing. The regulator has up to 240 days to decide.
BlackRock, Bitwise, Fidelity, VanEck, Valkyrie, WisdomTree, and Invesco’s application decisions were all delayed to mid-October.
The delay was not surprising, according to Bloomberg Intelligence ETF analyst Eric Balchunas, who said the odds of approval by the end of the year remain at 75%.
March madness
Crypto trading firm QCP Capital said Thursday that Bitcoin prices might reach lows towards the end of the year.
The combination of fading optimism over approval for spot Bitcoin ETFs and the possibility of Mount Gox bankruptcy payouts — which may flood the market with Bitcoin that users lost access to a decade ago — may send prices lower.
The result of the Grayscale lawsuit this week — which was seen as paving the way for future spot Bitcoin ETFs — was “a great outcome for the industry,” analysts at the firm wrote, before adding that “near-term inconsequential for spot price, and an opportunity to fade the short-term knee-jerk pump in spot and volatility.”
While the ruling wasn’t tantamount to approval, it does “cement the odds-on chance of an ultimate Bitcoin spot ETF approval,” the report said, adding that it’s more likely the SEC will kick the final decision to March — the absolute deadline for applications made in June.
The trading firm said prices could start the final quarter of the year near annual lows as optimism fades in light of a can-kicking US regulator. A lack of innovation in the sector compared with others, like Artificial Intelligence, may also dampen potential upside momentum.
“Nonetheless, with the likely ETF approval in March coinciding with the upcoming halving sometime in April, and a sharp US economic slowdown finally looking likely in Q2 — we think a big new year Q1 rally is on the cards,” the analysts wrote.
Crypto market movers
- Bitcoin is once more trading below $26,000 after it dipped 4.7% over the past day. Any rallies in the current environment have little upside or downside support amid a lack of liquidity and players in the market.
- Ethereum fell to about $1,643, down 3.6% in the past day.
What we’re reading
- Aerodrome just outpaced all DeFi protocols on Coinbase’s Base with $170m of deposits – DL News
- Why ruling in obscure Uniswap case is latest blow to Gary Gensler’s clampdown on cryptocurrencies – DL News
Adam Morgan McCarthy is DL News’ London-based Markets Correspondent. Got a tip? Reach out at adam@dlnews.com.
