Bitcoin (BTC), the biggest digital asset price extended its gains on Thursday by 5% in an attempt to breach the $38k price level. However, this surge comes in after the U.S. Securities and Exchange Commission (SEC) delayed its decision on approving the Bitcoin spot exchange-traded fund (ETF).
As per reports, the US SEC has chosen to delay its decision on an application filed by Hashdex to convert its existing bitcoin futures ETF into a spot fund. However, the commission has also delayed its verdict on Grayscale’s mission to launch a new Ethereum future ETF.
It is important to note that the commission needed to respond to the application by November 17. However, the top financial watchdog opted to delay its decision to 2024.
If ETF gets approval
The entire crypto market and institutional investors are now waiting for a potential approval of a spot Bitcoin ETF in the next 60 days. However, this development might begin a major moment for the entire digital assets market. This directly resembles the groundbreaking impact that the SPDR gold trust ETF had on the price of gold.
The experts anticipate an initial surge in demand pushed by institutional inflows if spot BTC ETF gains regulatory approval. The market would register a high accessibility for retail investors, bolstering market liquidity. Additionally, the green light for the ETF could bring about improved regulatory clarity. This could instill greater confidence among investors.
No ETF approval scenario
If the approval application of spot BTC ETF faces delays or rejection the crypto market is expected to sustain its current growth trajectory. Meanwhile, the absence of the ETF boost might result in missed opportunities for institutional investment. This can directly impact the growth of the market due to perceived higher risk and the continued absence of a traditional market structure.
Market Dynamics and Players
As the anticipation builds, there are various factors which include the involvement of major players like BlackRock and the initiation of filings for Ethereum ETFs. These players can influence market sentiment easily. However, delays in approval processes and the involvement of big financial institutions are adding to the intricate dynamics that surround this potential market altering event.