Bitcoin Spot ETF: SEC Delays Fail To Stop BTC As Price Clears $38,000

The Securities and Exchange Commission’s (SEC) latest decision wasn’t enough to hold back the foremost cryptocurrency, Bitcoin. The cryptocurrency crossed $38,000 even on the back of the SEC’s move to delay two Spot Bitcoin ETFs. 

On November 28, the SEC delayed its decision on Templeton and Hashdex’s Spot Bitcoin ETF application. As part of the announcement, the Commission also invited comments on what has been its major concern up till now: the issue of fraud and manipulation and whether or not the surveillance agreements in place can help curb that.  

Despite this development, the crypto market seemed unperturbed as Bitcoin crossed $38,000, and altcoins also posted some gains. This would come as a surprise to many, considering that the latest momentum in the market has been attributed majorly to the possibility of a Spot Bitcoin ETF approval.

A plausible explanation could be the fact that investors are certain that approval is imminent, irrespective of the actions of the Commission. This is evident in the fact that institutional money keeps flowing into the crypto market. CoinShare’s latest report showed that the crypto market, last week, saw its largest weekly inflow since late 2021. 

Meanwhile, the SEC’s latest delay is an interesting one, considering that a decision on both applications wasn’t due until January 1, 2024. This has led to several speculations as to whether or not this move still means that approval is on the horizon. 

In a post shared on his X (formerly Twitter) platform, Bloomberg analyst James Seyffart questioned the SEC’s actions and what it could mean for a potential approval. He reasoned that the SEC’s decision could be setting things up for a “full wave of approvals” in early January. The analyst had previously put the likelihood of an approval in January 2024 at 90%.  

He further stated that the delay on Hashdex’s application (Hashdex’s announcement came shortly after Templeton’s) confirmed his reasoning. He believes that the SEC is moving to set up all applicants for potential approval by January 10, 2024. He quickly noted that these approvals would be for the 19b-4 and didn’t necessarily mean an immediate launch. 

Scott Johnsson, a notable attorney from Davis Polk, also shared the same sentiments as Seyffart. He stated that the SEC might have chosen to delay these applications early so that the comment period could end before January 10, 2024. That way, they can approve all applications at the same time.