The SEC’s Approach
According to Bloomberg ETF analyst Eric Balchunas, the Securities and Exchange Commission (SEC) might opt for “more time” rather than outright rejection when it comes to Spot Bitcoin exchange-traded funds (ETFs).
The “Rug Pull” Scenario
Balchunas and fellow analyst James Seyffart maintain a 90% chance of approval by January 10, with the remaining 10% factor in the possibility of the SEC wanting additional time rather than delivering a definitive rejection.
Calls for Rejection
If an outright denial happens, fund issuers might take legal action against the SEC, akin to the response of crypto asset manager Grayscale in the past, as speculated by Balchunas.
Tension Builds
As the SEC continues to collect public feedback on the filings, recent submissions express a desire for outright rejection, with one letter received on January 2, arguing that Bitcoin’s decentralized nature could attract authoritarian regimes seeking to evade sanctions and exert control.
Hot Take: Uncertain Outcomes
The potential of a ‘more time’ stance adds an extra layer of uncertainty to the already intense spotlight on Spot Bitcoin ETFs. The outcome of this regulatory drama could have far-reaching implications for the crypto landscape.
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