Here’s what happened when Bitcoin ETFs were rejected in 2017


  • In March 2017, when U.S. regulators rejected the Winklevoss twin’s Bitcoin ETF, Bitcoin price plunged by nearly 20%.
  • There is a long history of Bitcoin ETF applications getting rejected by the SEC. 
  • In the summer of 2018, on a single day, nine Bitcoin ETF applications were rejected. 
  • Proponents expect BTC prices to plummet significantly in response to any ETF rejection. 

Bitcoin ETF rejection could trigger a BTC price drop, according to experts. Historically, ETF rejection has negatively impacted the asset’s price. 

Bitcoin ETFs lined up for approval from the SEC

The U.S. Securities & Exchange Commission (SEC) has a history of rejecting ETF applications over the years. From the first Bitcoin ETF filed in July 2013 by Cameron and Tyler Winklevoss to Fidelity’s filing for approval of “Wise Origin Bitcoin Trust” in March 2021, there is a long list of applications and subsequent rejections. 

The SEC has cited concerns over extreme volatility in BTC prices and the inherent risk for investors. Proponents remain hopeful that the new SEC chair Gary Gensler would be more accepting of cryptocurrency funds. 

Arcane Research, a crypto data-driven analysis and research firm, shared the following timeline for Bitcoin ETFs in Q4 2021. 

ETF Timeline

ETF timeline. 

Currently, there is an air of optimism in the crypto community, awaiting ETF approval; however, experts have hinted that the wait maybe longer. Todd Rosenbluth, senior director of ETF and mutual fund research, is a source close to the development. Rosenbluth believes that there will be no ETF approval by the SEC this year. 

Rosenbluth was quoted:

It’s a timing issue. Does it happen in 2021, or does it move to 2022, so all of these products that…could meet the goals actually are approved and can launch at the same time instead of getting a first-mover advantage? It’s possible – in fact, we think it’s likely – that we’re going to see a delay of a Bitcoin futures ETF until 2022 until the regulatory environment is more clear.

Pseudonymous cryptocurrency trader @RNR_0 tweeted:

The rejection of the Winklevoss twins’ Bitcoin ETF triggered a BTC price drop of nearly 20%. Proponents and traders who were around for the 2017 ETF rejection are reminding crypto Twitter of the negative impact on Bitcoin price. 

Ryan Selkis, the founder of Messari Crypto, commented on Grayscale’s Bitcoin ETF application, stating that the asset management giant has $35 billion in Bitcoin, and it must be converted into a Bitcoin ETF. 

FXStreet analysts have evaluated BTC prices and predicted that Bitcoin is primed for hitting a new all-time high. 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Pioneer crypto to retrace briefly while altcoins go higher

Bitcoin price continues to move sideways above a crucial psychological level. As long as support holds, BTC is in no trouble, however, if it breaks lower, it will likely drag Ethereum and Ripple along with it. Although this descent is likely to play out in the short term, it may be required to start a second leg-up.

More Bitcoin News

Robinhood is banking on Dogecoin traders as dog-themed altcoins break out

The spike in dog-themed cryptocurrency prices in the ongoing bull run has contributed to a rise in overall crypto market capitalization. Analysts expect the DOGE, SHIB, and AKITA prices to climb higher with the updates in their ecosystem and social dominance. 

More Dogecoin News

Shiba Inu price to provide buy opportunity before SHIB doubles again

Shiba Inu price saw a massive up move after it broke out of its consolidation pattern on October 23. This ascent propelled SHIB to a new all-time high. As bulls overextend the rally, however, things need to cool off before another massive rally emerges. 

More Shiba Inu News

Polkadot price targets all-time highs ahead of parachains launch

Analysts remain optimistic on the Polkadot network’s parachain launch scheduled for November 2021. Though the percentage of DOT tokens staked has dropped consistently, its price continues its upward climb. 

More Polkadot News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP