On Wednesday, Bitcoin price climbed towards $38,000 amid expectations of United States Securities and Exchange Commission (SEC) finally approving the first Spot BTC ETF. The regulator would eventually exercise its right to further delay its decision, which has generally been bearish for the price. However, Bitcoin price continued to show strength, suggesting that a Spot Bitcoin ETF approval could already be priced into the market.
SEC Delays Spot BTC ETFs
The second announcement On Wednesday, he decided to further delay his decision on Spot Bitcoin ETF deposits; in particular, the Hashdex Spot Bitcoin ETF filing that was due to a decision or delay on November 15. The Commission had decided that it needed more time to fully consider and investigate the filing before giving a definitive response. This means that a decision regarding the filing of the Hashdex ETF is not expected until 2024.
Not only did the SEC decide to delay its decision on the Hashdex Spot ETF Depositbut he also chose to do it on the Grayscale Ethereum Futures Deposit. This comes even after Grayscale emerged victorious from the regulator in court, which demanded that the SEC review Grayscale’s Spot Bitcoin ETF filing.
Much like the Hashdex ETF, the SEC chose to postpone its decision on the Grayscale Ethereum Futures ETF, pushing its deadline to 2024, thereby dashing hopes of ETFs coming this year. However, Bitcoin and Ethereum appear to have ignored this news with little to no reaction.
BTC bulls hold steady | Source: BTCUSD on Tradingview.com
Is Bitcoin Price Already Accounting for ETF Approvals?
Approvals for a Spot Bitcoin ETF And one Ethereum Futures ETF have been awaited by the crypto community for months now. And as with any asset, investors can become indifferent to whether or not current events affect their investment decisions.
Such a development would mean that the Bitcoin and Ethereum ETF approvals are already priced into the price and would not have much effect on the price once they are finally approved. However, this does not seem to be entirely the case.
An example is when the price of XRP jumped following rumors of BlackRock files for XRP ETF, then crashing once it’s been debunked. Again, on Wednesday, as expectations around the SEC’s decision grew, the Bitcoin price And Ethereum rose to $38,000 and $2,080, respectively, suggesting investors still expect the approval to move the market significantly.
What seems to be happening is that news of delays by regulators no longer has the downward effects that it once had. In this case, investors simply do not react to news of a delay as they usually would, because it is not widely understood that it is not the same as a rejection.
THE Bitcoin The price has since retraced since reaching $38,000, but is holding at a healthy level of $37,000 as of this writing. Ethereum also followed suit, falling to $2,046 from its Wednesday high of $2,080.
Featured image from CNBC, chart from Tradingview.com