The crypto community is on pins and needles this week for the approval of new cryptocurrency ETFs. Experts point out that this factor has become the dominant catalyst for recent growth. It is logical to assume that if by the end of October the hopes are not justified, a significant correction is possible in the market.

Tuesday's news feed is full of ETF discussions. Jonathan Steinberg, CEO of exchange-traded fund WisdomTree Investments, said that the approval of the Bitcoin ETF by the US Securities and Exchange Commission is imminent and could happen soon. But he does not undertake to predict the timing.

What's more, Steinberg notes that blockchain technology could disrupt the traditional financial sector, as mutual fund ETFs did in their time. And it seems that the SEC is now beginning to realize that the delay in approving the Bitcoin ETF is harming investors rather than protecting them. Steinberg adds that the right rules must be adopted for blockchain technology to flourish.

Bloomberg Experts Predict ETF Approval In October

Bloomberg analyst Mike McGlone also says this. He previously suggested that Bitcoin futures ETFs could be approved in the US by the end of October as the SEC is under strong pressure from market demand.

McGlone highlighted late last month that the growing number of ETF filings (there are now over 30) and the fact that money is leaving the US, especially from Cathie Wood's ARK Invest, an ETF in Canada, could motivate the SEC to speed up its decision.

It was also noted yesterday that McGlone's colleague, Bloomberg Senior ETF Analyst Eric Balchunas, recently suggested that the likelihood of regulatory approval of the futures ETF is high. Balchunas had previously predicted that October would be the month the industry would see ETF approval. And now he notes that at least five applications for bitcoin funds have a high chance of getting approval in the near future.

What the SEC says about ETFs

Currently, the SEC has not yet provided any definitive answer but hinted that serious consideration of applications for Bitcoin futures ETFs is not already underway. The actions of the regulator have not yet instilled hopes in the industry for the approval of spot bitcoin ETFs.

The Commission recently notified four applicants who have applied to open such funds, which is postponing the final decision on their applications to November-December. These are the applications of the Kryptoin Bitcoin ETF, WisdomTree Bitcoin Trust, Valkyrie XBTO Bitcoin Futures Fund, and Global X Bitcoin Trust.

ETF driver is a double-edged sword

ETFs continue to dominate market discussions. Market participants expect their approval to attract a lot of institutional investment to the market. The pending ETF approval this month has been cited as one of the factors contributing to the current surge in bitcoin prices.

What happens if expectations are not met? Will prices roll back and how big will it be? The memories of the dispersal of the cryptocurrency by Elon Musk and its collapse on the subsequent critical remarks about bitcoin being unecological are still fresh in my memory.

What if expectations are met and the SEC approves bitcoin futures funds? A local correction is also possible, but the subsequent bullish impulse may be significant.

Meanwhile, the local technical picture on the daily BTCUSD chart looks somehow not very happy. The breakout of the resistance level 55,842.84 seems to be false. And the candlesticks of the previous two days formed something like a bearish engulfing. Although all the features of the model are not very precisely observed.

But you shouldn't be scared yet. Even a correction to the strong mirror support zone 52,000.18 - 52,929.15 will not look scary if after the price confirms it as a support. But the thought of ETF news and expectations is still worth keeping in mind.