The U.S. Securities and Exchange Commission (SEC) has once again delayed its decision on the approval of several Bitcoin exchange-traded funds (ETFs), citing ongoing concerns about potential market manipulation. The postponement affects proposals from Global X, Franklin Templeton, and Hashdex, which were part of the regulator’s most recent eight-day review.
This delay underscores the SEC’s cautious approach to cryptocurrency-related financial products, particularly ETFs, as regulatory authorities continue to grapple with market integrity and manipulation concerns. The cryptocurrency community closely watches the SEC’s decisions, as approval could pave the way for substantial institutional investment from Wall Street into digital assets. CryptoQuant, a crypto analytics firm, predicts that the approval of a Bitcoin ETF could contribute to a potential increase in the cryptocurrency’s valuation by up to $1 trillion.
While Bloomberg Intelligence reports a 90% chance of ETF approval by January, market participants are optimistic that such approval could bring enhanced stability and liquidity to the crypto market, drawing comparisons to the impact of gold ETFs on their respective markets.
In anticipation of a positive outcome, Coinbase (NASDAQ:COIN), a leading cryptocurrency exchange, has expressed readiness to act promptly if a spot Bitcoin ETF receives authorization. Coinbase anticipates that the introduction of such financial products would have a substantial impact on the market, resembling the effects observed in traditional commodity markets