Bitcoin ETF applications have been postponed by the U.S. Securities and Exchange Commission (SEC) until October, affecting various firms such as BlackRock, WisdomTree, Invesco Galaxy, Wise Origin, VanEck, Bitwise, and Valkyrie Digital Assets. These companies submitted their applications last month, hoping to launch the first spot bitcoin ETF. Advocates argue that such ETFs would enable greater retail investment in the bitcoin market without the need for investors to set up a wallet or directly purchase the cryptocurrency.
SEC’s decision delay impacts the crypto market
As a result of the SEC’s decision delay, bitcoin and major tokens have given up all their weekly gains. Traders’ hopes for a long-term recovery have been dampened, with the largest cryptocurrency falling below $26,000. Over the past 24 hours, solana (SOL) and litecoin (LTC) have dropped by as much as 5.5%, while ether (ETH) has lost 3.7%. Bitcoin cash (BCH) has slid by 7.7%. On the other hand, tron (TRX) and toncoin (TON) were the only tokens in the green on Friday, each up over 1%.
New York court classifies ether and bitcoin as commodities
In a recent court ruling, popular cryptocurrencies ether and bitcoin were classified as “commodities” by a New York court. The ruling dismissed a proposed class action lawsuit against decentralized crypto exchange Uniswap. The lawsuit, filed in April 2022 by a group of investors, accused Uniswap and its creator Hayden Adams of violating U.S. securities laws. The investors claimed that Uniswap failed to register as an exchange or broker-dealer and facilitated the trading of unregistered securities.
The lawsuit sought to hold Uniswap accountable for investor losses related to “scam tokens” traded on the platform, including EthereumMax (EMAX), Bezoge (BEZOGE), and Alphawolf Finance (AWF). However, the court ruled that the true defendants in the case were the issuers of the tokens, not Uniswap. While SEC Chief Gary Gensler has refrained from labeling ETH as a security, Judge Katherine Polk Failla of the Southern District of New York directly referred to it as a commodity and declined to extend federal securities laws to cover the alleged conduct in the case against Uniswap.
Large bitcoin holders add over $1.5 billion worth of bitcoin
According to a chart from IntoTheBlock, large bitcoin holders, or addresses owning 0.1% of the supply, have added over $1.5 billion worth of bitcoin in the last two weeks. This suggests that not only large investors but also the broader market is increasingly buying bitcoin on-chain.
Conclusion
The postponement of the SEC’s decision on Bitcoin ETF applications has had a significant impact on the crypto market, with major tokens losing their weekly gains. However, the classification of ether and bitcoin as commodities by a New York court may have implications for future regulatory decisions. Additionally, the increase in bitcoin holdings by large investors indicates a growing interest in the cryptocurrency. As the market awaits the SEC’s decision on Bitcoin ETFs, it will be interesting to see how these developments shape the future of the cryptocurrency landscape.
