Bitcoin ETF candidates were dealt another disappointment on Friday when the US Securities and Exchange Commission (SEC) punted on making a decision on such a product. However, the next time they hear from the SEC could be just a few weeks away.
The SEC has until September 1 to make a decision on the Bitwise Bitcoin ETP Trust. Regulators can reject, approve, or delay the application. Decisions for applications from BlackRock, VanEck, WisdomTree, and Invesco are due just a day later.
Crypto enthusiasts are hoping that this time around, the SEC will approve an exchange-traded fund that invests directly in Bitcoin. In particular, many are excited about the possibility of a Bitcoin ETF from BlackRock, the asset-managing powerhouse. BlackRock has a near-pristine record of getting ETFs launched.
However, there is no guarantee that the SEC will approve a spot Bitcoin ETF in September. In fact, many market observers expect another delay.
The SEC has consistently cited fraud and manipulation as some of the reasons not to approve a spot Bitcoin ETF. However, the recent excitement in the crypto space may have emboldened the SEC to approve a Bitcoin ETF. In addition, the launch of the Volatility Shares 2x Bitcoin Strategy ETF (ticker BITX) in June could be seen as a positive signal from the SEC.
Ultimately, the decision of whether or not to approve a spot Bitcoin ETF is up to the SEC. However, market observers are expecting another delay in September.
An ETF is an exchange-traded fund, which is a type of security that tracks the price of an underlying asset. In the case of Bitcoin ETFs, the underlying asset would be Bitcoin. ETF approvals would make it easier for investors to buy and sell Bitcoin, which would increase demand for the cryptocurrency and drive up its price.
The halving is a process that occurs every four years when the amount of Bitcoin that is rewarded to miners for validating transactions is cut in half. This reduces the supply of Bitcoin, which makes it more scarce and valuable. The most recent halving occurred in May 2020, and the next one is scheduled to occur in May 2024.
Both ETF approvals and the halving are positive catalysts for Bitcoin price growth. If the SEC approves a Bitcoin ETF in the near future, it would be a major milestone for the cryptocurrency and could lead to a significant increase in demand. The halving is also expected to have a positive impact on Bitcoin price, as it will reduce the supply of the cryptocurrency and make it more scarce.
In addition to ETF approvals and the halving, there are other factors that could contribute to Bitcoin price growth in the future. These include:
- Increased adoption by institutional investors
- Increased use of Bitcoin for payments
- Development of new applications for Bitcoin technology
- Continued growth of the cryptocurrency ecosystem
Overall, the outlook for Bitcoin is positive. The cryptocurrency has a number of factors working in its favor, including ETF approvals, the halving, and increased adoption by institutional investors. These factors could lead to significant price growth in the future.
Shayne Heffernan
