Bitcoin price declines as SEC delays spot Bitcoin ETF decision

The Bitcoin price has encountered turbulence as the U.S. Securities and Exchange Commission (SEC) postpones its decision on Bitcoin ETFs, causing unease among crypto enthusiasts. Despite this uncertainty, automated trading tools are emerging as a means for traders to navigate these challenging times and seize new opportunities in the crypto market.

The SEC’s cautious stance on approving the first Bitcoin ETF is reverberating through the market, resulting in a drop in Bitcoin’s value—a situation that crypto holders find disheartening. Nevertheless, the advent of automated trading tools, such as those offered by TradeSanta, connected to both spot and futures trading platforms, presents traders with the means to mitigate risks and capitalize on market downturns.

Earlier this year, Bitcoin made several attempts to consolidate above the $30,000 threshold, but it fell short of sustaining those levels. As the year progresses, the cryptocurrency may continue to trade below this psychologically significant mark. One of the primary factors contributing to the persistent bearish pressure is the SEC’s prolonged deliberation over approving a spot Bitcoin exchange-traded fund (ETF).

The SEC’s delay in making a decision on Bitcoin (BTC) ETFs has had repercussions for numerous applicants, including major players like BlackRock, who have actively encouraged other institutions to reapply for ETF approval.

Several prominent entities have applied for a Bitcoin ETF with the SEC, reflecting the growing interest in bringing institutional and retail funds into the crypto space. Key applicants include:

1. BlackRock: The world’s largest asset manager, overseeing $8.6 trillion, submitted its application for a spot Bitcoin ETF in mid-June. This move had a significant impact on the Bitcoin market, given BlackRock’s immense influence. The SEC accepted BlackRock’s application for review just one month later.
2. Fidelity: This financial services giant, after facing rejection in 2021, reapplied for its Wise Origin Bitcoin Trust to be transformed into an ETF in July of this year.
3. VanEck: VanEck has been pursuing SEC approval for a Bitcoin ETF since 2018 and rejoined the race in July 2023 after previously withdrawing its application.
4. ARK Invest: Investment management firm ARK has been waiting for the SEC’s approval for its ARK 21Shares Bitcoin ETF since June 2021.
5. Invesco and Galaxy Digital: These entities joined forces to seek approval for the Invesco Galaxy Bitcoin ETF, aiming to create an ETF “physically backed” by Bitcoin, with Invesco as the sponsor.

Additional institutions planning to launch Bitcoin ETFs include WisdomTree, Valkyrie Investments, Bitwise, and GlobalX.

The SEC’s decision to delay its spot Bitcoin ETF verdict in late August had a pronounced impact on the Bitcoin market. Bitcoin, which had been hovering above $28,000, struggled to retest the $30,000 resistance level. However, the SEC’s postponement dashed market sentiment, causing Bitcoin’s price to decline until it found support near the $25,000 mark in mid-September.