On August 29th, the cryptocurrency market became lively following news of Grayscale’s legal victory. This unexpected development caused the price of Bitcoin to surge by an additional $1,000, reaching $27,000 within a short period. However, the market dynamics took a turn on the National Day as the U.S. Securities and Exchange Commission (SEC) announced a postponement of its decision regarding the review of applications for a Bitcoin ETF Spot.
Another significant event unfolded as Bitwise began reevaluating its strategy. They abruptly submitted a request to withdraw their application for a Bitcoin ETF, which they had previously submitted to the SEC on August 3rd. This move surprised the community, given that Bitwise’s Chief Investment Officer, Matt Hougan, had previously advocated for the approval of all pending ETF applications.
During an interview with Bloomberg, Matt Hougan emphasized that the approval of multiple ETF funds would foster competition, drive prices down, and bring forth the best products for the market. However, Bitwise’s decision to withdraw its application also came with an explanation. They stated that they wanted to ensure their ETF fund delivered the best value to investors but couldn’t guarantee that the fund’s investment goals would be met.
Recently, the SEC announced a delay in making decisions regarding Bitcoin ETF Spot applications from various companies such as WisdomTree, Invesco Galaxy, Valkyrie, VanEck, BlackRock, Bitwise, and Fidelity. The regulatory body stated that they needed more time to carefully assess the proposed rule changes and related concerns.
Despite this slowdown in the process, market analysts remain optimistic. Many are hopeful that the SEC will permit Bitcoin ETF Spot funds by the end of the year. According to Bloomberg analysts James Seyffart and Eric Balchunas, the likelihood of approval for this year is estimated at 75%, with a steep increase to 95% predicted for the following year.