The BTC price rose and fell almost equally rapidly over the past three days due to two recent events affecting pending applications for a US spot Bitcoin ETF.
In less than a day, Bitcoin (BTC) has lost nearly all of the gains it earned from Grayscale Investments’ court victory against the US securities regulator.
On Aug. 29, Bitcoin surged to a two-week high after a judge ruled that the Securities and Exchange Commission was “arbitrary and capricious” when it rejected Grayscale’s application for a spot Bitcoin ETF.
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However, the SEC’s recent delay to seven pending applications for Bitcoin ETFs in the spot market has sent the price of Bitcoin lower, falling almost 5% in the last 24 hours.
Data of Cointelegraph Markets Pro show that the price of Bitcoin is currently around $26,000, falling sharply from the level of around $27,300 that it had been holding since Grayscale’s victory.
On August 31, the SEC delayed applications from BlackRock, WisdomTree, VanEck, Bitwise, Valkyrie, and Fidelity, along with the joint Invesco and Galaxy fund.
Despite some expecting the delays, including Bloomberg ETF analysts, Eric Balchunas y James Seyffart, the price fell.
We are now completely back to the price of Bitcoin prior to Grayscale’s lawsuit against the SEC.
It pretty much sums up the current market situation. pic.twitter.com/PS4T12uHFh
— Ben Simpson (@bensimpsonau) August 31, 2023
The SEC’s delay allows it another 45 days to approve, reject, or delay the applications again.
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The next decision deadlines for ETF applications are between October 16 and 19, although the SEC can also choose to delay the decision until mid-March next year, when it will be required to make a decision.
However, Balchunas said on Aug. 30 that the probability that the SEC will approve a spot Bitcoin ETF this year was 75%, an increase from a previous prediction of 65%.
He attributed the increased likelihood to the Grayscale court win, saying the judge’s unanimous rejection of the SEC’s arguments means it “will have a hard time justifying further denials as it faces deadlines.”
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