The U.S. Securities and Exchange Commission (SEC) has postponed its decision on approving BlackRock's physical Bitcoin ETF, seeking public comments before proceeding further.
SEC's Objectives and ETF Changes
The SEC announced its delay in deciding on BlackRock's Bitcoin ETF that plans to use a physical subscription mechanism. This shift from previous cash-based approaches allows ETF shares to be transacted directly in Bitcoin. The SEC's decision to seek public opinions marks a significant moment in the ETF proposal process. On the same day, the SEC postponed decisions on Grayscale and 21Shares proposals, indicating cautious progress in regulatory decisions.
Market Reactions to Delays
The market's response to these developments has been mixed. Investors and industry leaders await further clarity on SEC's stance. As Sui Chung, CEO of CF Benchmarks, remarked, ‘Spot ETF approval today is a true milestone moment for the crypto asset class ... it stands to open bitcoin up to a much broader swathe of investors.’ These decisions could drive substantial market interest, especially if new models gain regulatory clearance.
Bitcoin Price Information
Currently, Bitcoin trades at $104,155.43, with a market cap reaching $2 trillion and a 24-hour volume of $52.53 billion. The cryptocurrency has seen a 30-day price increase of 24.61% and holds a market dominance at 61.18%. This data indicates consistent investor interest despite recent regulatory uncertainties.
Thus, the SEC's delay in making decisions regarding Bitcoin ETFs could significantly impact market mechanisms and ETF structures in the future. Public input and regulatory outcomes will be crucial for the ongoing development of the crypto industry.
