Concerns Mount Over the SEC’s Decision on Spot Bitcoin ETFs
The possibility of the U.S. Securities and Exchange Commission (SEC) rejecting spot bitcoin exchange-traded funds (ETFs) has raised concerns within the crypto community. A financial watchdog group called Better Markets has urged the SEC to reject these applications, citing potential “financial carnage” and “massive investor harm” if they are approved. Notably, the group has Senator Elizabeth Warren as a top testimonial and close ties to SEC Chairman Gary Gensler. Despite rumors of a possible “rug pull,” Bloomberg analyst Eric Balchunas explained that the SEC does not vote on bitcoin ETFs and that approvals or rejections are made via “Delegated Authority.”
Unlikely Scenario of a Vote
Balchunas further noted that it is unlikely for the SEC to vote on the spot bitcoin ETFs because they would have already scheduled a meeting. The upcoming meeting on January 11th would be too late for a January 11 launch, indicating that a vote is not relevant. He also expressed doubt that Chairman Gensler would vote against the ETFs since he has been actively involved in the initiative and directed SEC staff to collaborate with issuers on the ETFs. However, Balchunas emphasized that certainty of approval can only be achieved when the SEC officially announces its decision.
SEC’s Decision Expected Next Week
The SEC is expected to announce its decision on the spot bitcoin ETFs early next week. According to sources, final S-1 filings are due on Monday morning, indicating the SEC’s effort to align the launch of these ETFs for January 11. Cryptocurrency market participants are eagerly awaiting the SEC’s ruling as it will have significant implications for the adoption and mainstream acceptance of bitcoin.
Hot Take: SEC Facing Pressure to Reject Spot Bitcoin ETFs
The financial watchdog group Better Markets has raised concerns about the approval of spot bitcoin exchange-traded funds (ETFs), urging the U.S. Securities and Exchange Commission (SEC) to reject the applications. It warned of potential negative consequences, including “financial carnage” and “massive investor harm.” While speculation about a possible “rug pull” surfaced, Bloomberg analyst Eric Balchunas reassured that the SEC does not vote on bitcoin ETFs, highlighting that decisions are made via “Delegated Authority.” The SEC’s decision on spot bitcoin ETFs is expected next week, and it holds significant implications for the future of bitcoin in the financial markets.
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