UST’s crash was the Black Swan incident which confirmed that crypto-winter is here. Additionally, the failure of the market to register a significant correction further reinforced this conclusion. Investors are now wondering how long the crypto-winter will last, but Grayscale’s ETF applications may provide us with a reasonable timeline.
The lack of healthy bullish volume over the past few days has contributed to the lowering of crypto-prices. That could change if a white swan event such as a major ETF approval occurs in the West. Such a result is currently plausible for Grayscale’s bitcoin ETF applications. In fact, grayscale is sure So that such result can come out in the next few weeks.
There are a number of reasons that suggest that a bitcoin ETF may soon be on the way. The SEC has so far turned down a number of crypto-ETFs, but Grayscale’s application is still on the table. This is a sign that the SEC may be considering an approval.
Will the SEC Approve Grayscale’s ETF and What’s Its Timeline?
It’s still unclear whether the SEC will approve Grayscale’s ETF, but there are several factors supporting the possibility of approval.
For example, following the recent approval and roll-out of three crypto ETFs, especially in Australia, the SEC is facing more pressure to pursue such a route. This makes Australia the second country after Canada to adopt crypto-ETFs.
Grayscale also launched its The First Bitcoin ETF in Europe, However, it was reportedly a Futures Bitcoin ETF. Therefore, the lack of a significant impact on the market.
The SEC plans to announce its decision on Grayscale’s currently pending spot bitcoin ETF application in June.
How will the approval affect the cryptocurrency market?
A spot bitcoin ETF provides direct exposure to the cryptocurrency market, unlike futures-based ETFs. This means that the demand for spot ETFs will be directly linked to the spot market and, therefore, have a direct effect on the price. This explains why bitcoin ETFs in Europe failed to make a significant impact on bitcoin.
In case of approval, a spot bitcoin ETF in the US would pave the way for investors, especially institutions, to add BTC to their balance sheets. A wave of demand from spot ETFs could potentially trigger the next rally. So it is important and much awaited.