Bitcoin nosedives an hour before expected ETF decision

Bitcoin was back on the rise after briefly dropping below $45,000, but dipped 2% just half an hour before the expected SEC decision


Artwork by Crystal Le


Cryptocurrencies and related equities whipsawed Wednesday, with investors and analysts waiting to hear the US Securities and Exchange Commission’s ruling on a bitcoin ETF. 

Bitcoin, which had been steadily climbing earlier in the day after dipping below $45,000, lost around 2% as of 3:30 pm ET Wednesday. Ether, on the other hand, turned things around after a disappointing few days, gaining 8.5% Wednesday afternoon. 

The moves come after a false bitcoin ETF approval report — posted from the SEC’s own X account — caused a rally and crash in BTC Tuesday afternoon. 

Read more: SEC will investigate, ‘determine appropriate’ steps following X account compromise

“Another interesting twist to yesterday’s tale (as if we didn’t have enough!) is ETH’s move on the approval news and denial,” Noelle Acheson, author of the ‘Crypto is Macro Now’ newsletter, said. “It jumped along with BTC, and then kept on going while BTC plunged.”

Wednesday marks the SEC’s deadline to approve or deny Ark and 21Shares’ bitcoin ETF application. Based on SEC filings submitted Wednesday and comments from issuers and analysts, traders expect the agency to also rule on other similar applications it has been presented. 

Acheson added that positive news on the bitcoin ETF front could drive ETH prices higher as investors hope for a similar product approval in the future. 

“Given approval of the BTC spot ETF, approval for the ETH version is likely since the same market considerations hold,” she said. “ETH spot ETFs would probably not be allowed to offer staking yield, so demand for them is likely to be more muted, but there still could be some upside through broader distribution and greater awareness.”

On Wednesday, cryptocurrency exchange Coinbase witnessed fluctuations in its share price. Coinbase is expected to serve as the custodian for eight out of the eleven spot ETF applications that investors are closely monitoring. After rising earlier in the trading session, COIN inched lower in the last half hour of the trading day, losing 1.2%. 

Galaxy Digital, which has its hat in the ring with its Invesco Galaxy Bitcoin ETF application before the SEC, conversely saw its shares soar. GLXY, which trades on the Toronto Stock Exchange, gained 6% Wednesday.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.


Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2023

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research Report Cover Vertex.jpg


The proliferation of new perp DEXs has led to fragmented liquidity across various DEXs and chains. Vertex, known for its vertically-integrated DEX that includes spot, perpetual, and integrated money markets, is now tackling cross-chain liquidity fragmentation through horizontal integration with the launch of new Edge instances. Vertex's integrated offerings and cross-margined account structure amplify the benefits of new instances: native cross-chain spot trading, optimized cross-chain basis trading, consistent interest rates, reduced bridging friction, and more.


Partnering with EtherFi and Angle, the fully on-chain perp DEX features bespoke collateral



Gavin Wood introduced the next evolutionary step for the Polkadot network: the Join-Accumulate Machine, or JAM


The side events were the places to be at Consensus 2024, according to attendees


Also, who’s come out swinging in the spot ether ETF fee war — and who could undercut them


I know it is not in their nature, but US regulators could learn a lot by researching the digital asset frameworks that overseas regulators have already gotten right


Also, the ETF hype train can count out at least one member