Bitcoin (BTC) spot exchange-traded funds (ETFs) are unlikely to be approved this year, an analyst said, undermining optimism following Grayscale’s recent surge in the cryptocurrency industry. legal victory Against the U.S. Securities and Exchange Commission (SEC).
The U.S. Securities and Exchange Commission (SEC) extended its decision period Seven ETF applications were affected, leading to lower investor expectations and pushing BTC prices below $25,800.
Ex-Coinbase Director Predicts Bitcoin ETF Approval Unlikely in 2023
Grayscale scored a major legal victory last week when Judge Neomi Rao ruled that the SEC was wrong to deny Grayscale’s application to convert its Grayscale Bitcoin Trust (GBTC) into a spot ETF.
The news initially boosted market sentiment, sending bitcoin above $28,100. However, the SEC subsequently extended the decision deadline for several ETF applications, causing BTC prices to drop by 1.1%, currently trading at $25,700.
at the latest interview Lory Kehoe, former director of U.S. cryptocurrency exchange Coinbase and head of blockchain Ireland at Yahoo Finance, said he believes a bitcoin spot ETF is more likely to be approved in 2024.
Kehoe stressed the importance of extensive analysis and due diligence for the remainder of the year, suggesting the SEC will consider media interests but will ultimately make an independent decision. He further added:
The possibility of SEC approval for a spot bitcoin ETF application has drawn increasing media attention. I think the SEC accepts all of this advice, but isn’t afraid to stand its ground and make its own decisions.
However, Kehoe also expressed a willingness to be proven wrong and hopes the ETF will be approved in 2023. One of the SEC’s key considerations is the issue of market manipulation, Kehoe said.
The regulator’s main responsibilities revolve around investor protection and financial oversight, and closely scrutinize the market for compliance with market standards for proper functioning.
If the SEC believes that the bitcoin market meets these criteria, a bitcoin spot ETF could be approved, marking a major milestone in the history of cryptocurrencies and bitcoin.
Kehoe emphasized that the approval of the BTC ETF will have profound ramifications for Grayscale, its investors, and the broader cryptocurrency and asset management community.
This will mark an important moment in the history of cryptocurrencies, providing more accessibility and legitimacy to the digital asset market. However, the SEC’s assessment remains cautious.
While Grayscale’s recent legal victory has ignited hopes of a bitcoin spot ETF being approved, the former Coinbase director said such an outcome is unlikely in 2023.
The SEC’s decision to extend the decision deadline for several ETF applications has dampened investor expectations and led to a drop in BTC prices. Market manipulation concerns remain an important factor for the SEC, and the regulator’s scrutiny of whether the BTC market adheres to its standards will ultimately determine the fate of the ETF.
If approved, it would mark a major milestone for cryptocurrencies and enhance the credibility and accessibility of the market.
Featured image via iStock, chart via TradingView.com