Will the SEC Approve Bitcoin’s First ETF?
Will the SEC Approve or Reject the Winklevoss’ ETF?
As the deadline approaches for the decision on the Bitcoin ETF to be given, uncertainty grows throughout the markets, as nobody is able to confidently estimate which way it will go.
It’s not the first time we’ve been in this situation. The SEC (Securities and Exchange Commission) has delayed the decision date of the Winklevoss twins’ proposal for the Bitcoin ETF before, and this has left a sour taste in people’s mouths, with many expecting the same decision this time around.
However, with that being said, in the recent weeks, Bitcoin’s price has hit more all-time highs, even reaching parity with gold for the first time ever, resulting in mainstream headlines.
Many believe the looming decision date of Bitcoin’s first potential ETF defying odds and becoming approved is the reason behind the recent price rally, as traders and investors don’t want to miss out on what could potentially drive Bitcoin’s price even higher.
When Will We Get a Decision?
Saturday, March 11th, 2017 was the final deadline for the SEC to give approval, but there are now claims of the deadline actually falling on the 13th , which is on a Monday. This has thrown many people off and created an even greater degree of uncertainty, as no one actually knows which day an announcement will be given.
This could cause the markets to falsely panic, as those uninformed will be expecting an announcement on the 11th, while others will be waiting for the following weekday, which is the 13th. With false panic, it could theoretically provide a final buying opportunity if the ETF defies the critics and is approved.
Is the ETF a Good or Bad Thing?
Many say the price will surge above $2,000 if the ETF is approved and crash if rejected. This could be true, as the recent surge past $1,200 seems to be centered around the hype of the ETF.
As FOMO (Fear of Missing Out) grips the digital currency community, investors and traders have been buying Bitcoin to get ready for the anticipated price increase if the SEC decides in favour of the ETF. While most believe the decision will be against the ETF happening, many have their fingers on the pulse, ready to exit and avoid a panic sell.
No one truly knows what will happen, so no one truly knows what course of action to take. People are embracing a “hope for the best, but expect the worse” mindset.
Skeptics also believe that with the Bitcoin ETF approved, the number one decentralized currency won’t be so decentralized, being that it would be prone to price manipulation. At the same time, others have dismissed this, saying it will bring in many new investors and capital, ultimately giving Bitcoin and the blockchain technology the media coverage it deserves.
What’s the Chance of Approval?
The SEC could give a decision at any time before the deadline, though the chances are unlikely. The decision has been constantly delayed, with many putting approval chances at as little as 10–20%.
If the decision isn’t in favour of Bitcoin, we could expect a slight drop in price. In the long run, however, this would likely only be a minor altercation to Bitcoin and the blockchain technology