US SEC Postpones Decision Date for VanEck’s Bitcoin ETF
April 29, 2021
The US Securities and Exchange Commission (SEC) has announced that its final decision on VanEck’s Bitcoin ETF proposal will suffer a 45-day delay.
With this delay, the Grayscale Bitcoin Trust (GBTC) holds a monopoly on institutional investments looking for Bitcoin (BTC) exposure. Grayscale is the point of entry for most institutional investors for crypto purchases for regulatory and stability reasons. That said, the GBTC is priced at a premium compared to the price of the underlying asset.
The approval of a BTC ETF would create the much-needed competition Grayscale, as large amounts of institutional funds would flow into the ETF.
ETFs will permeate the crypto space (crypto exchanges) once approved because of their highly regulated and stable nature. Apart from institutional investors, retail traders (especially those having a hard time navigating through the current market) will also troop into the new investment vehicle, driving demand higher.
Apart from the exposure it provides, a Bitcoin ETF would get immensely adopted by institutional investors because of its clear-cut regulatory and taxation framework. Investors would also not have to bother about holding the underlying asset, as an ETF would do that for them.
Sadly, the SEC maintains an antagonistic stance against BTC ETF and has, once again, delayed VanEck’s proposition.
Key BTC Levels to Watch — April 29
Bitcoin has fallen into a sideways momentum between the $54k and $55k levels as market volatility settles. We expect this consolidation to persist over the coming hours with possible slight dips to the $53,400 support.
However, a return of market volatility should push the benchmark cryptocurrency higher ($56,700), as bulls still have market dominance despite being dormant.
Meanwhile, our resistance levels are at $55,000, $56,000, and $56,700, and our key support levels are at $54,000, $53,000, and $52,500.
Total Market Capitalization: $2.08 trillion
Bitcoin Market Capitalization: $1.01 trillion
Bitcoin Dominance: 48.8%
Market Rank: #1
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