BlackRock, the world’s largest asset manager, and five other “traditional financial” (TradFi) institutions filed with the US Securities and Exchange Commission (SEC) in June to begin trading a “spot” Bitcoin ETF.
The cryptocurrency community’s faith in Bitcoin’s (BTC) eventual institutional adoption has been revived in light of this major breakthrough. A critical step forward was then taken in July, when the SEC accepted all six proposals for examination, bringing in the first round of discussion over the fate of the highly anticipated spot BTC ETF.
However, there is a good chance that the securities regulator may announce its judgement on one of the petitions as soon as today, August 11th, despite the fact that it has not provided a specific deadline for its final decision.
The SEC has until Sunday, August 13, to make a decision on ARKInvest’s spot Bitcoin ETF, Bloomberg analyst James Seyffart said on August 10.
Given that today is the final trading day before the weekend, Seyffart said he anticipates hearing the news from the SEC after the market closes.
According to Seyffart, though, he “fully expects a delay” from the SEC. Different factors may influence BTC’s price as it awaits the SEC’s decision on ARKInvest’s spot Bitcoin ETF application.
The dominant cryptocurrency’s price may be significantly boosted if the regulatory body gives its blessing. In addition to boosting the potential of Bitcoin’s acceptance inside the mainstream banking sector, such a move would also boost the prospects of additional institutional uses.
On the other hand, the possibility of an outright refusal might put downward pressure on BTC even if it is the least probable outcome. Although a decline is possible, it is expected to be small since five additional spot Bitcoin ETF applications are currently being reviewed.
The SEC might also decide to delay its judgement, which would have little impact on the price of Bitcoin. Given past regulatory trends, this scenario is the most likely conclusion.
Regardless, the next SEC ruling has the ability to drastically alter the direction of BTC’s price and the rate at which it is adopted by major institutions.
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