All Eyes on Grayscale Decision and Spot Bitcoin ETF Approval by US SEC this Week
After a strong crash last week, Bitcoin and the broader cryptocurrency markets have been consolidating for a while waiting for some major developments ahead this week.
Traders and significant holders are in anticipation of a potential outcome in the Grayscale vs. US SEC lawsuit, along with the U.S. Securities and Exchange Commission's forthcoming decision on six Bitcoin ETF applications, which includes the BlackRock spot Bitcoin ETF.
This week, the much-anticipated ruling in the Grayscale vs US Securities and Exchange Commission lawsuit is a focal point for experts. The Grayscale decision is expected to be announced on either Tuesday or Friday. Additionally, the US SEC is set to make determinations on six Bitcoin ETF applications from major asset management firms. Bitwise, BlackRock, VanEck, WisdomTree, and Invesco have submitted these applications, with responses anticipated by the week's end.
Bloomberg Intelligence ETF analysts previously assessed that Grayscale holds a 70% chance of prevailing in the SEC lawsuit. However, the court has repeatedly postponed the ruling due to SEC Chair Gary Gensler's hesitance toward approving a spot Bitcoin ETF. Furthermore, if Grayscale wins the lawsuit, it signifies likely approval of a spot Bitcoin ETF by the SEC this year.
In March, Grayscale's chief legal representative, Donald Verrilli Jr., informed the court that a spot Bitcoin ETF would offer enhanced investor protection by enabling CME's market oversight. Presently, most American investors engage in Bitcoin through less well-established and unregulated exchanges.
The verdict on the Bitwise, BlackRock, VanEck, WisdomTree, and Invesco applications is slated for Friday. A potential approval or consideration of a spot Bitcoin ETF by the US SEC would inject positive sentiment into the cryptocurrency market. Bitcoin's price could rebound above the 200-week moving average (200-WMA) at around $27,580. Michael Saylor, the executive chairman of MicroStrategy, noted that BTC's price seldom trades below the 200-WMA, implying that it could be an opportune time to buy the dip.
The Bitcoin price has been struggling around at $26,000 recently facing strong selling pressure and weakening technicals. Amid the recent drop in the BTC price volatility, the Bitcoin network activity has also dropped to a 2-year low. As Bitcoin continues to show weakness, the chances of its price recovery look grim as of now.