Can BTC Price Stay Above $36,000 After SEC Delays Bitcoin ETFs?

Simultaneously, rumors abound regarding the SEC’s potential recommendation of a “cash create” fund-handling system for ETF applicants. This system would enable the exchange of cash for ETF shares and is seen as an alternative to trading actual Bitcoin, preventing reliance on third-party brokers.

Bloomberg analyst Eric Balchunas suggested that while 2-3 filers may opt for cash-creates, others might prefer the “in-kind” system. Balchunas emphasized that despite the benefits of the “cash create” system, it poses challenges for investors regarding spreads and taxation. He said this might result in many applicants favoring the “in-kind” approach.

“This doesn’t change our 90% odds up or down [for a Bitcoin ETF approval], but it is a good sign the process is marching and SEC has a path forward in the plumbing that they are comfortable with,” Balchunas asserted.

However, JPMorgan has observed that similar ETFs in Canada and Europe have garnered minimal investor interest since their launch. Despite Ripple and Grayscale’s recent legal setbacks against the SEC, the firm suggests the regulatory tightening in the crypto market might not ease considerably due to its historically unregulated nature.

Analysts at JPMorgan expressed skepticism about a change in US lawmakers’ approach to crypto regulations, particularly in the aftermath of the FTX scandal.

“US crypto industry regulations are still pending and we do not believe US lawmakers would shift their stance because of the above two legal cases especially with the memories from the FTX fraud still fresh,” the JPMorgan analysts wrote.

BTC Price Continues to Hold Steady

Despite these regulatory developments, BTC’s price has displayed resilience, maintaining a price level above $36,000. The flagship digital asset was trading for $36,628 as of press time, according to data from BeInCrypto.

Bitcoin Price Performance. Source: BeInCrypto