- August 31, 2023
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
Need to know what happened in crypto today? Here is the latest news on daily trends and events impacting Bitcoin price, blockchain, DeFi, NFTs, Web3 and crypto regulation.
The United States Securities and Exchange Commission has delayed rulings on five spot Bitcoin ETF applications. Analysts had tipped the chances of a spot Bitcoin ETF by year’s end to 75% after a recent victory by Grayscale against the SEC. Meanwhile, a New York District judge has dismissed a class-action lawsuit against Uniswap.
SEC delays ruling on five spot Bitcoin ETFs
Predictably, the United States Securities and Exchange Commission has kicked the can down the road on five spot Bitcoin ETF applications.
Applications submitted by WisdomTree, Valkyrie, VanEck, Fidelity and Invesco Galaxy were all postponed by the securities regulator, according to an Aug. 31 SEC filing. By postponing the decisions, the SEC has another 45 days to contemplate a proposed rule change that would pave the way for the first spot Bitcoin ETF approval.
JUST IN: SEC is opting to delay (as expected) on spot bitcoin ETF deadlines pic.twitter.com/W4JjOji6L2
— Eric Balchunas (@EricBalchunas) August 31, 2023
The move came mere days after the SEC lost a crucial lawsuit brought by crypto asset manager Grayscale. Many in the crypto community took the decision to mean that the odds of a spot ETF approval had significantly increased.
In addition to the aforementioned applicants, several firms are vying for a spot Bitcoin ETF listing. Chief among them are BlackRock, ARK Invest and Bitwise Asset Management.
Bitcoin ETFs now have a 75% chance of approval, say analysts
Bloomberg analysts have raised the probability for an approved spot Bitcoin exchange-traded fund (ETF) by the end of 2023 to a whopping 75% — following a recent Grayscale victory against the federal securities regulator.
In a Aug. 30 post on X (Twitter), Bloomberg senior ETF analyst Eric Balchunas said they have raised the chances to 75% from an earlier 65% — due to the unanimity and decisiveness at which the United States Court of Appeals Circuit reached its decision in the recent case.
Fellow ETF analyst James Seyffart added that spot Bitcoin ETF approvals will likely be a “done deal” by Q4 2024, estimating the approval odds amounts to 95% for then.
NEW: @JSeyff & I are upping our odds to 75% of spot bitcoin ETFs launching this yr (95% by end of '24). While we factored Grayscale win into our prev 65% odds, the unanimity & decisiveness of ruling was beyond expectations and leaves SEC w "very little wiggle room" via @NYCStein pic.twitter.com/IyEGmWjuHa
— Eric Balchunas (@EricBalchunas) August 30, 2023
Balchunas added that given the recent legal and public relations loss, a denial by the SEC will be “politically untennable.”
Meanwhile, Republican presidential candidate Vivek Ramaswamy as lauded Grayscale’s recent victory over the federal securities regulator, arguing the decision will help keep Bitcoin and blockchain innovation from going overseas.
Ramaswamy is one of three presidential candidates still in the running who has shown outward support for the crypto industry, along with Robert Kennedy Jr. and Ron DeSantis.
Judge dismisses class-action lawsuit against Uniswap
Decentralized exchange Uniswap was vindicated from a class-action lawsuit after a judge showed rare understanding of the DeFi marketplace and how it operated.
Judge Katherine Polk Failla of the Southern District of New York dismissed claims of fraud brought forward by six plaintiffs.
The lawsuit was filed in April 2022 on behalf of a “nationwide class of users.” Plaintiffs claimed that Uniswap Labs controlled liquidity pools, including those created by scammers who launched fake tokens on the DEX. The judge claimed that neither the plaintiffs nor the defendants knew the identities of the scammers. Instead of suing the scammers, the plaintiffs were suing the defendants over statements made on social media.
Big Lesson for crypto policymakers and financial regulators (and the administrative state at large):
If you choose to avoid the legal process, if you do not want to engage in good faith rulemaking, the courts will not bail you out. https://t.co/r5RATmiwwq
— Mike Wawszczak (@mikewawszczak) August 30, 2023
“The Court declines to stretch the federal securities laws to cover the conduct alleged, and concludes that Plaintiffs’ concerns are better addressed to Congress than to this Court,” Failla’s order read.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
