Peter Dunworth’s Perspective
Peter Dunworth, a figure in The Bitcoin Adviser, recently expressed skepticism about the anticipated approval of Bitcoin exchange-traded funds (ETFs) in a discussion with Dale Warburton. Dunworth questioned the prevailing sentiment that Bitcoin ETFs are guaranteed to be approved by January 10th, arguing that regulatory bodies such as the Securities and Exchange Commission (SEC) may not strictly adhere to predetermined timelines.
Potential Obstacles to Approval
Dunworth highlighted a potential obstacle to approval, focusing on the breakdown of custodians for the ETFs. He raised concerns about Coinbase’s ongoing SEC investigation for unregistered securities, suggesting this could be a reason for regulatory hesitancy. Notably, he pointed out that Coinbase represents 90% of the custodianship for the 20 ETFs under consideration.
Market Chaos and Staggered Approvals
Dunworth predicted chaos in the Bitcoin market if all 20 ETFs were approved simultaneously, citing the potential influx of $10 to $20 billion in a short period, which could strain the market and lead to extreme price volatility. He also mentioned the possibility of staggered ETF approvals, dismissing the idea that approval would strictly adhere to the chronological order of applications and raising the possibility of regulatory favoritism.
Uncertainties and Potential Delays
Contrary to expectations of a smooth approval process, Dunworth highlighted uncertainties related to ongoing investigations, the SEC’s approach, and the potential market impact of a sudden influx of capital. He emphasized the unresolved issues surrounding major players like Coinbase and Grayscale, suggesting these factors could contribute to a delay in the expected ETF approval.
Hot Take: Is ETF Approval for Bitcoin Inevitable?
While the crypto community eagerly anticipates the approval of Bitcoin ETFs, the views expressed by Peter Dunworth raise important questions about the likelihood of a smooth approval process and potential market impacts. As regulators navigate ongoing investigations and major players like Coinbase face scrutiny, the possibility of ETF approval on the set deadline becomes less certain. The crypto market may need to brace for further delays and potential chaos if multiple ETFs are approved simultaneously, as highlighted by Dunworth.
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