After months of low volatility, Bitcoin has finally returned to its volatile nature, with a significant increase in price fluctuations. Additionally, we have seen a recovery in trading volumes. The past month has been quite favorable for cryptocurrency investors. Despite occasional dips, the price of Bitcoin has reached $36,000, a level that overly optimistic investors have been dreaming of for months.
It would have been a surprise if the SEC had approved all 12 applications this week. As expected by cryptocurrency investors, the regulatory agency decided to delay the decision. However, what stands out in the current situation is the improved communication with the SEC, unlike the continuous delays we have witnessed in the past.
SEC has started collecting public comments for the rule change that will enable GlobalX’s ETF listing on Cboe BZX Exchange. With the current decision, SEC has set a long timeline, with a final deadline of February 2024 for the application. Furthermore, the deadline for Franklin Templeton’s trillion-dollar application has been extended until January 1, 2024. We had seen both applications come after BlackRock’s move.
Will everything change instantly when the ETF is approved? The prevailing view is that interest will increase as institutional investors will find it easier and safer to enter this market. However, JPMorgan analysts have stated that similar ETFs launched in Canada and Europe have not attracted massive attention.
JPMorgan analysts do not expect a change in the approach of US lawmakers towards crypto regulations, especially after the FTX scandal. This raises questions for the institutional investor segment.
“The US crypto industry regulations are still pending, and US lawmakers may not adopt a lenient approach in the midst of ongoing lawsuits, especially when memories of the FTX fraud are still fresh.”
Bitcoin is finding buyers at $36,500. The price of oil, which dropped to $77 on Thursday, has surpassed $80 again, which is not good for fighting inflation. The next six months are prone to significant events such as cryptocurrency ETF approvals/rejections and a turning point in Fed policy. This means that cryptocurrencies will experience high volatility, either upwards or downwards.