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Throughout 2019 many investors and analysts alike have been looking towards the approval of a Bitcoin (BTC) exchange traded fund (ETF) as a potential catalyst that could spark significantly further gains for the cryptocurrency.
Yesterday, however, the ETF application that many within the crypto community had been looking towards as the most likely to garner the SEC’s favor was withdrawn by the applicant, signaling that there will not be any Bitcoin ETF in the US for the foreseeable future.
Bitcoin ETF Application Pulled as Approval Odds Dwindled
Many analysts had claimed that a Bitcoin ETF approval was unlikely due to the current regulatory unclarity surrounding the cryptocurrency, and the recent news regarding one of the most prominent BTC ETF applications being withdrawn confirms that the regulators are not ready to approve financial products that are built around nascent markets.
Yesterday, news broke that VanEck / SolidX had withdrawn their ETF application, which burst the hopes of many investors who believed that this application in particular could be a catalyst for future BTC gains.
Still, however, there is one remaining Bitcoin ETF application still pending a decision from the SEC, but it is highly improbable that it will garner the regulatory authority’s support and will likely be rejected when the decision deadline on October 13th comes around.
“VanEck withdrew its bitcoin ETF proposal today, presumably expecting that the SEC would reject it next month. Bitwise’s proposal is still pending (for now) & due for a final decision on October 13. My best guess — there will be no bitcoin ETF in 2019,” Jake Chervinsky, an attorney who specialized in cryptocurrency, explained in a recent tweet.
VanEck withdrew its bitcoin ETF proposal today, presumably expecting that the SEC would reject it next month. Bitwise's proposal is still pending (for now) & due for a final decision on October 13. My best guess — there will be no bitcoin ETF in 2019. 🙁https://t.co/cMamYkymk1
— Jake Chervinsky (@jchervinsky) September 17, 2019
Will BTC Be Impacted by ETF Application Rejections?
Currently, it does not appear that investors are too fazed by the news that there will likely be no Bitcoin ETF in 2019, as BTC’s price has remained stable in the lower-$10,000 region.
Alex Krüger, an economist who focuses primarily on cryptocurrencies, spoke about this in a recent tweet, explaining that the odds of approval have always been quite low, so this latest development does not come as a surprise.
“Odds of the SEC approving a bitcoin ETF in the foreseeable future have always been extremely low. The market fully priced this reality in a while back. This ETF proposal withdrawal is irrelevant as far as $BTC price goes,” he noted.
Odds of the SEC approving a bitcoin ETF in the foreseeable future have always been extremely low. The market fully priced this reality in a while back. This ETF proposal withdrawal is irrelevant as far as $BTC price goes. https://t.co/p8kSONufiS
— Alex Krüger (@krugermacro) September 17, 2019
Because the aggregated crypto market is currently expressing major strength, it is highly likely that investors will increasingly turn to technical developments for BTC to guide their investment strategies, and the approval of a BTC ETF will likely bolster the crypto sometime down the road.
Featured image from Shutterstock.
