Bitcoin Traders Watch as SEC Casts Doubt on Spot ETFs

Bitcoin's gains wiped out after SEC delays spot ETF decisions

Bitcoin (BTC) has quickly lost the gains it made after Grayscale Investment's court victory against the US Securities and Exchange Commission (SEC). The judge ruled that the SEC's rejection of Grayscale's spot Bitcoin ETF application was "arbitrary and capricious," causing Bitcoin to surge to a two-week high on August 29. However, the recent delay by the SEC to seven pending spot Bitcoin ETF applications has caused Bitcoin's price to drop by nearly 5% in the last 24 hours.

SEC Delays Multiple ETF Applications

The SEC's decision to delay several spot Bitcoin ETF applications, including those from BlackRock, WisdomTree, and VanEck, has had a significant impact on Bitcoin's price. The fall from the $27,300 level, which Bitcoin had been sustaining since the Grayscale win, has been steep. Bitcoin's price is currently around $26,000, according to Cointelegraph Markets Pro data.

Analysts Were Predicting Delays

Some analysts, such as Eric Balchunas and James Seyffart from Bloomberg ETF, had anticipated the SEC's delays. Despite this, the market saw a decline in price. Balchunas had previously predicted a 65% chance of the SEC approving a spot Bitcoin ETF this year, but after Grayscale's court win, he raised the probability to 75%. The judge's rejection of the SEC's arguments put pressure on the regulator to justify further denials as it faces upcoming deadlines.

Further Delays and Decision Deadlines

The recent delay by the SEC allows them an additional 45 days to approve, deny, or delay the ETF applications. The next decision deadlines are scheduled between October 16 and October 19. However, the SEC has the option to further delay the decision until mid-March next year, at which point they will be forced to make a decision.

This delay in approving spot Bitcoin ETFs has left Bitcoin traders uncertain about the future of the market. All eyes will be on the SEC's decisions in the coming months as investors wait to see if Bitcoin ETFs will become a reality in the US market.