The Bitcoin price plunged below $26,000 today as optimism around the approval of a spot Bitcoin exchange-traded fund (ETF) filing was again postponed.
On August 31, the U.S. Securities and Exchange Commission (SEC) pushed off decisions on seven ETFs by 45 days, citing the need for more time to review the applications.
SEC Punts Decision On Spot Bitcoin ETF Applications
It’s been a rough week for Bitcoin, which rose to a peak near $28K on Tuesday following Grayscale’s court win over the Securities and Exchange Commission in the firm’s bid to transform its Bitcoin Trust (GBTC) into a spot Bitcoin ETF. The ruling raised hopes of the imminent listing of a spot Bitcoin ETF in the United States. Bloomberg ETF strategists, in fact, boosted the likelihood of a spot BTC ETF launching this year to 75%, and a 95% chance by the end of 2024.
As has been the trend of rallies for a couple of months now, Bitcoin swiftly puked those gains. The pullback turned into a full meltdown yesterday, with the world’s largest cryptocurrency by market cap plummeting below the $26,000 level as the SEC delayed its decision on seven proposals for spot Bitcoin ETFs as the securities regulator wades through a slew of recent applications.
The lineup, awaiting a decision from the SEC, includes industry titans such as BlackRock, Fidelity, Bitwise, VanEck, Valkyrie, Invesco & Galaxy, and WisdomTree.
Bitcoin was changing hands at $25,851.80 at publication time. Ether (ETH) followed the classic cryptocurrency with a 3.4% drop since yesterday. Ripple’s XRP also plunged 3.2% during the same period, according to CoinGecko. The broader crypto market cap shed 3% overnight to $1.08 trillion on September 1.
Bitwise withdrew its application for Bitcoin and Ether Market Cap Weight Strategy ETF after the SEC delay.
This postponement to at least mid-October adds to the long list of barriers for institutions looking to secure a green light for a spot crypto ETF. In the past, the SEC has stonewalled countless applications, always citing concerns over possible market manipulation.