- The US Securities and Exchange Commission could nip Grayscale’s victory in the bud using alternative arguments to reject a spot Bitcoin ETF.
- Analysts at Berenberg bank led by Mark Palmer said that the regulator is likely to present concerns about the spot Bitcoin market to support its arguments.
- Bitcoin price could lose ground amid increasing pressure from macroeconomic data releases and SEC’s next move after the panel’s ruling.
Prices of Bitcoin, Ethereum and altcoins in the top 30 assets have recently increased, riding on the back of Grayscale’s win against the US Securities & Exchange Commission (SEC) in its spot Bitcoin ETF application lawsuit.
Two factors are likely to determine the direction of Bitcoin price trend in the short term. The release of US macroeconomic data and the SEC’s next steps in the Grayscale ruling by the Federal Court.
Also read: Bitcoin traders exercise caution ahead of US Core PCE Price Index release
SEC could reject again spot Bitcoin ETFs
The SEC is likely to come up with alternative arguments to reject the spot Bitcoin ETF application by the asset manager, according to research from analysts at the German investment bank Berenberg cited by CoinDesk.
While the Federal Court asked the SEC to revisit its arguments used to reject Grayscale’s application, it did not compel the regulator to approve the ETF application. The SEC is still in a position to appeal the panel’s ruling and offer arguments supporting its concerns surrounding the spot Bitcoin market.
Analysts at the German Investment Bank said that Coinbase’s involvement in the spot Bitcoin ETF could add to the regulator’s concerns and strengthen its arguments to oppose the approval of such trading product.
Coinbase is embroiled in a lawsuit brought by the US financial regulator, battling charges of operating as an unregistered securities exchange.
The analysts, led by Mark Palmer, explain in their report that Coinbase’s involvement serves the SEC’s reconfigured arguments to reject spot ETF applications. This development could dampen sentiment among BTC holders and hinder its price in the short term.
Bitcoin price is $27,201 at the time of writing, on Binance. The asset yielded 2.91% gains for BTC holders, over the past week.
Crypto ETF FAQs
What is an ETF?
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Is Bitcoin futures ETF approved?
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Is Bitcoin spot ETF approved?
Bitcoin spot ETF has been approved outside the US, but the SEC is yet to approve one in the country. After BlackRock filed for a Bitcoin spot ETF on June 15, the interest surrounding crypto ETFs has been renewed. Grayscale – whose application for a Bitcoin spot ETF was initially rejected by the SEC – got a victory in court, forcing the US regulator to review its proposal again. The SEC’s loss in this lawsuit has fueled hopes that a Bitcoin spot ETF might be approved by the end of the year.
Like this article? Help us with some feedback by answering this survey:
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.
Recommended Content
Editors’ Picks
Meme coin PEPE resists decline despite mass profit taking by whale
PEPE, an internet frog-meme inspired token, has seen a spike in profit-taking activity by traders. PEPE holders have consistently realized gains in the meme coin since April 30, as seen on on-chain activity tracker Santiment.
Solana is more profitable than Ethereum for the first time, Robinhood’s Europe arm launches SOL staking
Solana surpassed Ethereum in profitability for the first time ever. Robinhood’s European crypto arm launched Solana staking, offering nearly 5% yield per annum. SOL price added 2.25% on Wednesday.
XRP holds gains as attorneys debate relevance of discounts offered to Ripple’s institutional clients
Ripple (XRP) price consolidates in a tight range around $0.50 on Wednesday as the Securities and Exchange Commission (SEC) legal battle against payment-remittance firm Ripple intensifies with two key issues in focus this week.
Over a million new crypto tokens issued in three months, 90% on Base
The resurgence in meme coins in the past three months has resulted in over a million new tokens being issued in the crypto ecosystem. Data from crypto intelligence tracker Dune Analytics shows that 90% of the new coins in the Ethereum ecosystem are issued on Base.
Bitcoin: Why BTC is close to a bottom
Bitcoin (BTC) price efforts of a recovery this week have been countered by selling pressure during the onset of the American session. However, the downside potential appears to have been capped.