Impact of Bitcoin Spot ETF Denial on the Crypto Market
Cryptocurrency analyst Nate Geraci believes that if the SEC rejects a Bitcoin Spot Exchange-Traded Fund (ETF), it could have a significantly negative effect on the entire cryptocurrency market. Geraci expressed his views on Twitter, stating that if an ETF is not approved in January, it would result in one of the biggest rug pulls in crypto history.
The anticipation of an ETF approval has had a major impact on the crypto market recently. The upcoming decision by the SEC, expected to take place next month, could also be a turning point in the acceptance of cryptocurrencies in traditional finance.
Geraci also mentioned that there is a close to 100% possibility of a Bitcoin ETF approval by the SEC, although it is not his base case scenario. He based this prediction on previous court victories by Grayscale over the regulatory watchdog and a COIN SSA.
SEC Chairman’s New Approach to Bitcoin Spot ETF Applications
SEC chairman Gary Gensler recently stated that the commission is taking a “new look” at pending Bitcoin Spot ETF applications. This suggests that the SEC may be trying to handle these applications appropriately at this time.
Gensler referred to the Commission’s past rejections of applications but acknowledged that they had to change their stance once the court became involved. The court’s decision in favor of Grayscale’s $GBTC conversion over the SEC’s decision in the Grayscale case has compelled the SEC to reevaluate not only Grayscale’s application but also other issuers.
Hot Take: The Importance of a Bitcoin Spot ETF Approval
An approval of a Bitcoin Spot ETF by the SEC could have a significant positive impact on the cryptocurrency market. As the market is still recovering from the bear market in 2022, institutionalization of Bitcoin through an ETF could attract more investors and contribute to its overall growth.
The comparison to the adoption of Gold exchange-traded funds (ETFs) in the early 2000s highlights the potential for increased mainstream adoption of Bitcoin. Investors would have easier access to Bitcoin through regulated financial products, potentially boosting its credibility and value in the eyes of traditional finance.
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