It’s been a costly business denying spot Bitcoin ETF products a market, reactions claim, while Bitcoin price action steadies.
Bitcoin (BTC) tapered losses on Nov. 13 as the market showed little interest in U.S. regulators refusing to allow a spot exchange-traded fund (ETF).
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
ETF rejection causes few market headaches
News that the Securities and Exchange Commission (SEC) had declined to approve VanEck’s spot ETF product saw a dip towards $60,000 support but failed to spark significant volatility.
The first of multiple decisions regarding spot ETFs, the VanEck episode came as little surprise to many, but the firm expressing “disappointment” in the result.
“We are disappointed in today’s update from the SEC declining approval of our physical bitcoin ETF,” Jan Van Eck responded on Twitter.
“We believe that investors should be able to gain BTC exposure through a regulated fund and that a non-futures ETF structure is the superior approach.”
Other commentators were more vocal, with Matias Dorta, vice president of marketing at asset manager Roundhill Investments, noting the disadvantages to investors from eight years of SEC rejections.
“The SEC first rejected a $BTC ETF in 2013. They successfully protected investors from +12,700% gains,” he argued.
Bitcoin ETF timeline. Source: Arcane Research
Weekly close keeps everyone guessing
Moving on from the rejection, traders meanwhile focused on the weekly close.
BTC/USD needed to remain above range resistance in play since the initial $64,900 from April, popular trader Pentoshi said, this forming the key feature in the coming days.
2 days left but basically what I’ll be watching for
— Pentoshi Won’t Dm You. hates Dm’s. DM’s are scams (@Pentosh1) November 12, 2021
Fellow analyst Rekt Capital meanwhile maintained a firmly bullish perspective on longer-term price potential.
“All data science models suggest that BTC will peak much higher than $100,000 in this cycle,” he said in one of a series of tweets Friday.
Others pointed to the lack of evidence to suggest the bull market had ended or was even under threat at its current stage.