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Crypto News

Bitcoin’s Volatile Price Ride: Grayscale Victory Followed by SEC Delays Erode BTC Gains

Author

Jay Solano

Tags

Tags Editor's Choice / Slider Posts

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2 mins
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Author

Jay Solano

Tags

Editor's Choice / Slider Posts

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Editor's Choice, Slider Posts

Reading time

2 mins
Last update


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Bitcoin experienced a sharp rise and fall over a three-day span, attributed to events surrounding the spot Bitcoin Exchange-Traded Funds (ETFs). On August 29, the cryptocurrency saw a spike after Grayscale Investments won a legal battle against the U.S. Securities and Exchange Commission (SEC). The SEC had previously rejected Grayscale’s spot Bitcoin ETF application, labeling it as “arbitrary and capricious.” However, this optimism was short-lived.

Just two days later, on August 31, the SEC chose to delay decisions on seven other pending spot Bitcoin ETF applications. This announcement triggered a decline in Bitcoin’s price, erasing nearly all of the gains it had made following Grayscale’s court victory. At the time of writing, Bitcoin’s price had fallen nearly 5% in the past 24 hours, with the value hovering around $26,000, a significant drop from its recent high of about $27,300.

Among the ETF applications delayed were those from financial giants like BlackRock, WisdomTree, VanEck, Bitwise, Valkyrie, Fidelity, and a joint fund by Invesco and Galaxy. Bloomberg ETF analysts Eric Balchunas and James Seyffart had expected these delays, suggesting that the SEC is using its additional 45-day window to make a more informed decision.

Interestingly, despite the SEC’s delay, Balchunas revised his earlier prediction regarding the likelihood of a spot Bitcoin ETF approval this year, raising it from 65% to 75%. He based this adjustment on Grayscale’s court victory, arguing that the unanimous rejection of the SEC’s reasons by the court would make it challenging for the regulator to justify further delays.

As the crypto market holds its breath, the next round of SEC decision deadlines for these ETFs falls between October 16 and October 19, with an ultimate decision deadline extending to around mid-March of the next year.