The reason for the turbulence in the markets was the Securities and Exchange Commission’s postponement of its decision on ETFs. On Thursday evening, the SEC announced that the decision on applications for spot bitcoin exchange-traded funds will be postponed until October.
Recall that earlier applications for ETFs were filed by BlackRock, WisdomTree, Invesco Galaxy, Wise.Origin, VanEck, Bitwise and Valkyrie Digital Assets.
The announcement of the postponement came after a U.S. federal court ordered a U.S. court to “withdraw” a denial of a trust issuer’s application for Grayscale Bitcoin Trust (GBTC) to transition to an exchange-traded fund.