Pechman’s Take on SEC and Bitcoin ETF
Pechman suggests that if the SEC refuses a Bitcoin ETF, it may require a court decision. The judge would review the rule applied to existing spot ETF markets like gold and oil to determine if the same methodology has been used for Bitcoin.
The Justification of the Bitcoin Rally
Pechman believes that the recent Bitcoin rally was justified. However, considering the history of spot Bitcoin ETF rejections and concerns about wash trading and price manipulation on Tether-based exchanges, one should not be too optimistic about its approval.
Risks to Bitcoin Support Price
Pechman argues that the $30,000 support price for Bitcoin is at risk due to macroeconomic uncertainties, weak stock market performance, and the strict regulatory environment surrounding cryptocurrencies.
The Impact on Gemini’s Earn Program
Genesis Global Trading, a subsidiary of Digital Currency Group (DCG), has severely affected Gemini’s Earn program. Despite knowing the risks, investors fear that $25 billion in crypto is in jeopardy. DCG owns Grayscale, which manages the Grayscale Bitcoin Trust ($19 billion) and a similar instrument for Ether ($6 billion).
Closing Thoughts
Pechman’s insights highlight the potential challenges Bitcoin and other cryptocurrencies face in gaining regulatory approval. While the recent rally may have been justified, it is important to consider the risks and uncertainties that could impact the market. The influence of companies like DCG and their subsidiaries on the crypto ecosystem also raises concerns about the safety of investments. Overall, the cryptocurrency market remains volatile and subject to various external factors.
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