Bitcoin has maintained its position above $36,000 despite the recent announcement from the US Securities and Exchange Commission (SEC) regarding the delay in the approval process for several spot Bitcoin ETF applications. The SEC filed extensions for decision-making on ETF applications from GlobalX and Franklin Templeton, leading to potential impacts on the cryptocurrency market.
SEC’s Decision to Delay ETF Approvals:
On November 17, the SEC announced delays in the approval process for spot Bitcoin ETF applications from GlobalX and Franklin Templeton. The extension allows the SEC to approve or reject GlobalX’s application by February 2024, while Franklin Templeton’s application has a deadline of January 1, 2024. The delay follows BlackRock’s application for a spot Bitcoin ETF in June.
Rumors of “Cash Create” System:
Rumors are circulating about the SEC potentially recommending a “cash create” fund-handling system for ETF applicants. This system would enable the exchange of cash for ETF shares, serving as an alternative to trading actual Bitcoin and avoiding reliance on third-party brokers. While some applicants may consider the “cash create” system, others might prefer the “in-kind” system, according to Bloomberg analyst Eric Balchunas. The “in-kind” approach involves trading actual Bitcoin for ETF shares.
JPMorgan’s Skepticism and Regulatory Concerns:
JPMorgan analysts expressed skepticism about a change in US lawmakers’ approach to crypto regulations, citing recent legal setbacks against Ripple and Grayscale. The analysts believe that regulatory tightening in the crypto market might not ease significantly due to its historically unregulated nature. They emphasized that ongoing US crypto industry regulations are pending, and recent legal cases might not shift lawmakers’ stance.
Bitcoin’s Resilience Amid Regulatory Developments:
Despite regulatory uncertainties and delays in ETF approvals, Bitcoin has exhibited resilience, maintaining a price level above $36,000. The flagship cryptocurrency was trading at $36,628 as of the latest data. The market optimism surrounding the potential approval of a Bitcoin ETF has contributed to new yearly highs for BTC over the past several months. Other major cryptocurrencies, including Ethereum and Solana, have also experienced positive momentum during this period.
Bitcoin’s ability to hold steady above $36,000 amid regulatory developments and delays in ETF approvals highlights its resilience in the face of uncertainties. The market continues to monitor regulatory decisions and their potential impacts on cryptocurrency prices, especially as the prospect of a Bitcoin ETF approval remains a key focus for investors.