SEC Delays Bitcoin ETF Decisions Until 2024: Is $20,000 or $40,000 Next?
• The US Securities and Exchange Commission (SEC) has delayed its decision on all Bitcoin ETF proposals until 2024.
• Companies such as BlackRock, ARK Invest, Bitwise Asset Management, VanEck, WisdomTree, Invesco, Galaxy Digital, Fidelity and Valkyrie are among those seeking approval for a spot Bitcoin ETF from the SEC.
• The SEC has cited market manipulation risks as the reason for their reluctance to approve the investment vehicle.
SEC Delays All Bitcoin ETF Decisions Until 2024
The US Securities and Exchange Commission (SEC) has delayed its decision on all Bitcoin ETF proposals until early 2024. This means that investors will have to wait longer to gain access to this investment vehicle in the United States.
Companies Seeking Approval for Spot Bitcoin ETFs
Several prominent asset management companies have filed applications with the SEC for a spot bitcoin ETF including BlackRock, ARK Invest, Bitwise Asset Management, VanEck, WisdomTree, Invesco, Galaxy Digital, Fidelity and Valkyrie. The SEC can delay its review process of these applications by up to 240 days before approving or denying them.
SEC’s Reluctance To Approve A Spot Crypto ETF
Gaining approval from the SEC for a spot crypto ETF faces significant challenges due to its unique nature compared to other investment vehicles like Bitcoin futures-linked ETFs. Unlike futures-linked investments which allow indirect exposure to cryptocurrency without owning it directly; a spot BTC ETF involves holding actual Bitcoin within a fund which exposes investors more directly than ever before. As such the potential risks associated with market manipulation are higher than ever before which is why the SEC is reluctant in approving this type of investment vehicle despite increased demand from investors both inside and outside of the crypto space.
Potential Impact On The Price Of Bitcoin
It remains unclear how exactly news of further delays on an official decision regarding spot bitcoin ETFs will affect prices in the short term but it could potentially cause some volatility in price action while investors wait patiently for news of approval or denial from the regulator .
As things stand right now it looks likely that any decisions made regarding spot bitcoin ETFs will be pushed back until early 2024 at least unless something changes drastically between now and then. This means that investors must exercise caution when investing in cryptocurrencies as well as prepare themselves for increased levels of uncertainty surrounding prices over this period of time until further clarity emerges from regulatory bodies concerning these types of investments vehicles.