The price of BTC rose sharply and fell almost as fast over the past three days amid two recent events impacting pending applications for spot Bitcoin ETFs.
In less than a day, Bitcoin (BTC) has shed nearly all the gains it made from Grayscale Investment’s court victory against the United States Securities regulator.
On Aug. 29 Bitcoin popped to a two-week high after a judge ruled that the Securities and Exchange Commission was “arbitrary and capricious” when it rejected Grayscale’s spot Bitcoin ETF application.
However, the SEC’s recent delay to seven pending spot Bitcoin ETF applications has sent Bitcoin’s price downwards, falling nearly 5% in the last 24 hours.
Cointelegraph Markets Pro data shows Bitcoin’s price is currently around $26,000, falling steeply from around the $27,300 level it had been sustaining since the Grayscale win.
BlackRock, WisdomTree, VanEck, Bitwise, Valkyrie and Fidelity along with the joint fund by Invesco and Galaxy were all delayed on Aug. 31 by the SEC.
The price decline came even though some were expecting the delays to take place including Bloomberg ETF analysts Eric Balchunas and James Seyffart.
We’ve now fully retraced back to pre SEC Grayscale Lawsuit Bitcoin price.
Pretty much sums up where the markets at right now. pic.twitter.com/PS4T12uHFh
— Ben Simpson (@bensimpsonau) August 31, 2023
The SEC’s delay allows it another 45 days to approve, deny or again delay the applications.
The next decision deadlines for the ETF applications are between Oct. 16 and Oct. 19, though the SEC can also choose to delay to decision up to around mid-March next year when it will be forced to make a decision.
However, Balchunas said on Aug. 30 that the probability of the SEC approving a spot Bitcoin ETF this year was 75% — up from an earlier prediction of 65%.
He pinned the probability hike on Grayscale’s court win saying the judge’s unanimous rejection of the SEC’s arguments means it “will struggle to justify further denials as it faces deadlines.”