Crypto: The price of BTC explodes with rumors of Bitcoin ETF approval

The SEC is expected to make a decision soon regarding Bitcoin spot ETFs. After tough legal battles, refusals, and disappointments, the suspense may come to an end in the coming days. As a result, the price of the main crypto is showing green oscillators, even though the outcome may not be the one hoped for.

The crypto market is going crazy as the SEC opens a window for Bitcoin ETF approval

Bitcoin ETF approval has been on everyone’s lips for many months, especially after Grayscale’s victory over the SEC. With the crypto market returning to its upward trend, wild rumors are boosting the price of BTC. Indeed, the price has risen more than 4% in the past 24 hours and is currently hovering around $36,800.

The cause of this sudden increase? Speculation about the imminent approval of spot ETFs. According to a note by James Seyffart, an analyst at Bloomberg Intelligence Research, the SEC has an eight-day window to approve the 12 Bitcoin ETF applications.

Based on his statements, there is a high chance that the US regulator will approve several ETFs by January 10, 2024. While this analysis revives hope among crypto investors, it is possible that the regulatory body will reject all the applications as usual.

The regulator doesn’t seem to be in a rush to make a decision

If one thing is certain, it is that the SEC is not short of imagination when it comes to delaying things. Indeed, the agency has been rejecting all Bitcoin spot ETF applications since 2017. The arrival of Gary Gensler in 2021 hasn’t changed much, as he follows the same direction.

In this configuration, Bloomberg’s optimism could take a serious hit, along with that of crypto investors. In fact, most of them rely on the approval of a cash-traded exchange-traded fund to revive the upward trend in the crypto market. This is despite the reluctance of some experts like John Morgan, who do not believe in this prospect.

On the other hand, Seyffart points out that the regulator has the option to approve 9 applications before January 10, including Grayscale’s. However, Michael Sonnenshein, the CEO of the trust, recently stated that his company has not yet received any word from the SEC regarding the approval of cash Bitcoin ETFs.

Thus, despite the rumors and optimism, the SEC could still mock the crypto sector by citing investor protection as the main reason. Indeed, the regulator has been using it as a shield for years to reject Bitcoin ETF applications. Let’s hope things will be different this time.