{"id":58213,"date":"2023-09-01T07:15:21","date_gmt":"2023-09-01T11:15:21","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=58213"},"modified":"2023-09-01T07:15:23","modified_gmt":"2023-09-01T11:15:23","slug":"sec-delays-spot-bitcoin-etfs-again-crypto-market-drops","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/sec-delays-spot-bitcoin-etfs-again-crypto-market-drops\/","title":{"rendered":"SEC Delays Spot Bitcoin ETFs Again, Crypto Market Drops"},"content":{"rendered":"\n

The SEC has postponed its decision on seven spot Bitcoin ETF applications, dampening the crypto market sentiment. This comes after Grayscale\u2019s legal victory<\/a> over the SEC, which had raised hopes for early approvals.<\/p>\n\n\n\n

\"SEC<\/figure>\n\n\n\n

The crypto market took a hit on Thursday as the U.S. Securities and Exchange Commission (SEC) delayed its decision on applications for seven spot Bitcoin exchange-traded funds (ETFs), which would track the current price of the cryptocurrency. <\/p>\n\n\n\n

Bitcoin fell 4.6%<\/strong> in the past 24 hours,<\/strong> while Ethereum lost 3.6%.<\/strong> Bitcoin Cash<\/a> plunged 7.3%, <\/strong>and XRP was down more than 4% <\/strong>after the SEC announced its postponement.<\/p>\n\n\n\n

\"SEC
See the 24hr prices and charts for Ethereum, Bitcoin Cash <\/strong>and XRP cryptocurrencies on<\/em>\u00a0CoinDesk<\/em>\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a><\/figcaption><\/figure>\n\n\n\n

Why Spot Bitcoin ETFs Matter<\/h3>\n\n\n\n

Spot Bitcoin ETFs are seen as a major breakthrough for the crypto industry, as they would allow investors to gain exposure to Bitcoin without having to buy, store, or secure the digital asset themselves. <\/p>\n\n\n\n

They would also provide more liquidity, transparency, and efficiency to the Bitcoin market and attract institutional and retail investors looking for a regulated and convenient way to invest in the cryptocurrency.<\/p>\n\n\n\n

Spot Bitcoin ETFs differ from Bitcoin futures ETFs,<\/use><\/svg><\/span><\/a> which track the price of Bitcoin futures contracts traded on regulated exchanges such as the Chicago Mercantile Exchange (CME)<\/a>. <\/p>\n\n\n\n

Bitcoin futures ETFs do not hold actual Bitcoin but rather contracts that promise to deliver Bitcoin at a specified date and price in the future. <\/p>\n\n\n\n

They are subject to contango<\/strong><\/em>, which means that the futures price is higher than the spot price, resulting in a negative roll yield for investors.<\/p>\n\n\n\n

The SEC has already approved several Bitcoin futures ETFs, such as the ProShares Bitcoin Strategy Fund (BITO) and the Valkyrie Bitcoin Strategy Fund (BTF),<\/a> which began trading in October 2021. <\/p>\n\n\n\n

However, many crypto enthusiasts and investors prefer spot Bitcoin ETFs, as they believe they would better reflect the true value of Bitcoin and have lower fees and risks.<\/p>\n\n\n\n

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NEW: @JSeyff<\/use><\/svg><\/span><\/a> & I are upping our odds to 75% of spot bitcoin ETFs launching this yr (95% by end of '24). While we factored Grayscale win into our prev 65% odds, the unanimity & decisiveness of ruling was beyond expectations and leaves SEC w "very little wiggle room" via @NYCStein<\/use><\/svg><\/span><\/a> pic.twitter.com\/IyEGmWjuHa<\/use><\/svg><\/span><\/a><\/p>— Eric Balchunas (@EricBalchunas) August 30, 2023<\/use><\/svg><\/span><\/a><\/blockquote>