- Cryptocurrencies have been severely hit by another delay in a decision on a Bitcoin ETF.
- A delay does not mean rejection, and now there are two other critical dates to watch.
- An upward move could start before these dates.
Ethereum was struggling with $ 400, and now the ETH / USD is around $ 350. Ripple, the weakest link in recent months began its free fall with the XRP / USD which approached $ 0.30 after trading above $ 0.40. And Bitcoin is negotiating closer to $ 6,000 compared to $ 7,000. What seemed to be just a BTC / USD price correction now seems a complete turnaround.
The last hammer that falls is not very different from the previous ones and is linked to one thing: the funds traded on the stock exchange (ETF). Digital coins previously suffered from a rejection of a request from the ETF, such as that of the Winklevoss brothers. This time, it's a delay, and not for the first time. The SEC had planned to give its verdict on ETF VanEck this week, but decided to postpone it. The hopes for approval were evaluated, and when approval did not arrive, cryptos crashed.
However, it is important to remember that a delay is not a refusal . Taking more time can result in a more in-depth consideration that can go either way. It can also be considered positive: instead of a definitive refusal, the US regulatory agency takes this request seriously.
What we know for sure is that the approval or disapproval of an ETF is essential for Bitcoin and other encrypted ones. To familiarize yourself with the topic, see:
The Bitcoin ETF explained: 9 questions and answers on the critical cryptographic catalyst
So when the we know? The verdict on the ETF VanEck is now scheduled for September 30 . After such a significant pushback, it is difficult to see how another delay is possible.
And there is another date to circulate before September 30th. On September 21st, the SEC will decide on the request for Direxion also postponed.
Between mid-August and late September, there is a lot of time. What will happen to cryptocurrencies during this period? Given the weather, things could get worse before they get better. You can not rule out a few more weeks of ups and downs.
But the markets do not wait patiently for the news to arrive. The prices of Bitcoin, Ethereum, Ripple and others can start to rise in anticipation of a positive result. Speculations can be based on new information or as often happens in the markets, for no reason.
What are the probabilities of approval? No one knows for sure, but many see a lot of progress in the field, with Coinbase leading the way with solutions that make Custody and Liquidity more robust and enjoyable for the authorities. So, nothing is certain, but the possibilities are increasing. They could see the recent wastes and delays as loss of a battle, but not a war failure.
Which cryptocurrency will earn more? Looking at the recent past, the digital currency n. 1 will probably be the biggest beneficiary. Most of the ETF proposals focus only on Bitcoin . Also, looking at the recent price action, we see that Bitcoin dropped to levels last time in June, while Ethereum and Ripple set new lows for the year.