Should the United States Securities and Exchange Commission decline approval for spot bitcoin exchange-traded fund applications (ETFs) in January, it could lead to a gargantuan market bloodbath.
Spot ETF Denial To Negatively Impact Crypto Market
For months, Wall Street titans, financial strategists, and cryptocurrency proponents have breathlessly speculated as to the likelihood of the looming approval of a spot Bitcoin ETF, which could expose the premier crypto to untold billions of dollars worth of investment from traditional finance institutions and investors. On rumors alone of such an event, crypto prices across the board have climbed considerably in recent months.
While the crypto community anxiously awaits the SEC’s decision on whether to greenlight or deny one or more spot bitcoin ETFs, ETF Store president Nate Geraci is warning a rejection could potentially trigger unwanted consequences for crypto prices.
“If spot bitcoin ETF is not approved in January, might be one of biggest rug pulls in crypto history,” Geraci stated.
Noted industry commentators have theorized that the first spot Bitcoin ETF in the U.S. will most likely be approved by the SEC between January 8 and 10 — which is the next and final deadline.
Geraci also believes the likelihood of such an investment vehicle being given the green light by the SEC is nearly 100%.
Gensler: SEC Taking ‘New Look’ At Spot Bitcoin ETF Applications
SEC chairman Gary Gensler recently revealed that the commission is “taking a new look” at applications for spot Bitcoin ETFs. This is in light of Grayscale Investments’ resounding court victory against the SEC in August over its bid to convert its flagship GBTC fund into a spot-based BTC ETF. The court particularly addressed the SEC’s differential treatment of spot bitcoin ETFs and similar funds based on futures contracts, which the Wall Street top financial cop has already greenlighted.
Needless to say, the road to a spot BTC ETF in the United States has been long and arduous for bitcoin advocates, with the SEC previously denying all 33 filings across over a dozen applicants since the Winklevoss twins first sought a regulatory nod over 10 years ago.
Given the SEC has seemingly softened its stance towards spot crypto products, the world is perhaps at the precipice of a truly game-changing moment for bitcoin and crypto assets in general.