The recent announcement of the application for spot Bitcoin exchange-traded fund (ETF) of the financial powerhouses on Wall Street resulted in a frenzy of excitement in the cryptocurrency industry, especially in the Bitcoin community. However, the resulting evaluation from the US Securities and Exchange Commission (SEC) in line with these filings came as a letdown. The decision, calling them “inadequate”, has caught the attention of US House Financial Services Committee Chairman Patrick McHenry, who expressed concerns and criticism towards SEC Chair Gary Gensler. McHenry’s comments on Twitter have sparked a debate within the crypto community.
McHenry’s Criticism of SEC Chair Gensler
Patrick McHenry, the Republican Chairman of the US House Financial Services Committee, voiced his intent via a tweet to closely monitor the SEC’s response to spot Bitcoin ETF filings submitted by BlackRock, a prominent financial services giant. The politician urged the SEC to consider approving a spot Bitcoin ETF, arguing that it would offer investors a regulated product.
McHenry also raised suspicions about Gensler’s motivations, suggesting that the rejection may be an attempt to stifle crypto innovation in the United States.
The SEC’s Response and Market Reactions
In response to the spot Bitcoin ETF filings, the SEC directed BlackRock, Fidelity, and other asset managers to resubmit their applications, specifically addressing “surveillance-sharing agreements” and the spot Bitcoin exchange they intended to employ. Fidelity and other asset managers subsequently named Coinbase as their preferred market for surveillance.
It is worth mentioning that the SEC had previously approved a leveraged Bitcoin ETF, leading to some ridicule from the crypto community over the denial of a spot Bitcoin ETF. However, it is now evident that these developments have played a role in the broader recovery of the crypto market.
Evaluating Bitcoin’s Current Price Performance
Twenty-four hours following the move of the SEC Chair, the price of Bitcoin slumped by 1%, settling around $30,500. In that timeframe, the digital currency saw a high of $31,093 and a low of $29,600.
Fast forward to this morning, Bitcoin’s price experienced a 1.24% recovery in the past 24 hours and 1.73% gain over the week as of 6:00 AM UTC time today. The trading price of the crypto during the period is hovering at the $31,000 mark.
Notably, renowned analyst Michael van de Poppe believes that the crypto market overreacted to the SEC’s assessment of the recent Bitcoin ETF filings. He predicts a bullish momentum for Bitcoin, with the potential for the price to reach $35k-$40k.
Final Thoughts
The recent scrutiny of spot Bitcoin ETF filings by the SEC has sparked criticism from US House Financial Services Committee Chairman Patrick McHenry. While the politician raises concerns about Gary Gensler’s intentions, the SEC’s decision to require revisions from asset managers indicates a willingness to consider spot Bitcoin ETFs under certain conditions. Meanwhile, analysts like Michael van de Poppe believe that the market may have overreacted in the fallout of the situation.
Amid these developments, it remains to be seen how the SEC’s stance on spot Bitcoin ETFs will evolve and its impact on the crypto market in the long run.
