The decision is too important, and SEC continues to study the issue.
SEC is still not ready to share its view on ETFs – the decision on Grayscale Bitcoin Trust has been postponed once again.
Why SEC Is Undecisive?
The key decision that should be made by SEC is whether it is ready to allow hard asset-backed Bitcoin ETFs. At this point, physical-backed Bitcoin ETFs are not available, while futures-backed Bitcoin ETFs (VanEck Bitcoin Strategy ETFProShares Bitcoin Strategy ETF) are actively traded.
According to the SEC, it continues to evaluate whether a potential physical-backed Bitcoin ETF will be subject to fraud and manipulation. However, the real point of the whole debate is whether Bitcoin is a real asset, just like other assets, including stocks, bonds, property, etc.
This is a major decision for SEC which will have significant implications for crypto markets and the financial system, so it is in no rush to announce the final verdict.
Will We See A Hard Asset-Backed Bitcoin ETF Anytime Soon?
The cost of the decision is big, so SEC will likely make sure that it studied everything properly before it is ready to present its opinion on whether hard asset-backed Bitcoin ETFs are ready to trade on exchanges.
From a big picture point of view, the situation looks favorable for crypto markets. In case SEC does not approve hard asset-backed Bitcoin ETFs, things will simply stay the same as they are now. At the same time, a positive decision will widen the pool of potential investors, which will be bullish for Bitcoin and crypto markets in general.
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While regulatory issues are very important for Bitcoin and other cryptocurrencies, general risk appetite and rising interest rates will likely serve as the main catalysts for Bitcoin in the upcoming weeks. Bitcoin has recently managed to get above the $40,000 level, which is a good sign for the bulls. In case the world’s leading cryptocurrency stays above this level, it will have a good chance to gain additional upside momentum and move closer to the $50,000 level.
