The SEC has postponed its decision on approving Hashdex’s spot Bitcoin ETF and Grayscale’s ether futures ETF.
Bitcoin’s price unexpectedly surged to $38,000, reaching its highest level in 18 months, despite the SEC’s delay.

The U.S. Securities and Exchange Commission (SEC) has extended its timeline for making a decision on the Hashdex’s application to convert its Bitcoin futures exchange-traded fund (ETF) into a spot Bitcoin ETF. This delay also affects Grayscale’s application for an ether futures ETF. Initially set for a November 17 deadline, the SEC has now prolonged this period, underscoring the regulator’s cautious approach to such financial products​.

#SEC fireworks? #Bloomberg ETF analyst James Seyffart floats an intriguing idea:

What if the SEC gives the green light to all spot #Bitcoin ETFs simultaneously?

The crypto world might witness an explosion of possibilities! #BitcoinETF #cryptoregulation… pic.twitter.com/4ejZRU764u

— Collin Brown (@CollinBrownXRP) November 14, 2023

The Rising Tide of Bitcoin Amid Regulatory Uncertainty

In an unexpected turn of events, Bitcoin, the world’s most prominent cryptocurrency, experienced a significant price surge, reaching $38,000. This marks the highest price level for Bitcoin since May 2022, representing a substantial recovery from its previous decline. The cryptocurrency gained approximately 6% in value over 24 hours, elevating its year-to-date recovery to 129%. This rally extended to other cryptocurrencies as well, including Ether, the second-largest by market capitalization.

Analysts attribute this surge to the near completion of the Federal Reserve’s rate hike cycles, which is anticipated to boost cryptocurrency prices. Zach Pandl of Grayscale Investments highlights that “the recovery in crypto valuations can continue if real interest rates peak and we continue to see progress toward spot ETF approvals in the U.S. market.” This perspective reflects a broader sentiment in the market, where the anticipation of regulatory approvals plays a pivotal role in influencing asset values​.

Investors and market analysts are debating whether the current surge in Bitcoin’s price has already incorporated the expected effects of spot ETF approvals. While some believe that this factor might already be “priced in,” the real test lies in the extent of investment inflows that such ETFs could attract upon approval​.

Bitcoin is also showing considerable volatility, having overcome selling pressure at $35,000 earlier in the week. Currently maintaining crucial support levels above $36,000, it is speculated that Bitcoin could further rally to $43,000 or more in the upcoming weeks.

Additionally, on-chain data, including Bitcoin’s Network Value to Transaction (NVT) ratio, underscores the strength of Bitcoin network activity, suggesting robust health and potential for further growth in the market​.

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Filed under: Bitcoin - @ November 16, 2023 7:18 am