SEC’s Decision on Bitcoin ETF: An Analyst Gives a Closer Look and Unpacks the Latest Ongoing Developments

The post SEC’s Decision on Bitcoin ETF: An Analyst Gives a Closer Look and Unpacks the Latest Ongoing Developments appeared first on Coinpedia Fintech News

The cryptocurrency industry has been eagerly anticipating the decision of the Securities and Exchange Commission regarding the approval of the spot Bitcoin ETF. While analysts and prominent figures predicted the highest possibility of approval, some still think there are uncertainties surrounding the matter.

In this article, we will delve into the latest developments and insights from industry experts to provide a comprehensive overview of the current situation.

Race of Spot Bitcoin ETFs

Since the start, the SEC has received several applications for Bitcoin ETFs over the past year, but all have been rejected due to concerns over market manipulation and volatility. The SEC also sees Bitcoin ETFs as a novel asset that could be cornered. However, in recent months, there have been renewed hopes for approval as several prominent players in the industry, such as Fidelity and VanEck, have filed applications for the Bitcoin ETF. 

These proposals differ from previous ones in that they focus on physically-backed Bitcoin ETFs, which would allow investors to buy and sell shares that directly track the price of Bitcoin.

Recent Developments on Onoing Hype

Many prominent analysts predicted and anticipated recent matters, but recently, Bloomberg ETF analyst Eric Balchunas said that while it’s unlikely, there is still a bit of a chance that the SEC could hand down the “rug pull of a decade.”

But there is very little chance that approval will get rejected this month, which is most likely due to the Securities and Exchange Commission wanting “more time” rather than a flat-out rejection. He explained this while speaking to Cointelegraph.

Balchunas claims that this worry is the main reason he and colleague ETF analyst James Seyffart haven’t increased the odds past the 90% possibility of acceptance by January 10.

Eric explained that the amount of time and examination put in by the SEC and Bitcoin ETF Issues means it’s unlikely that a Bitcoin ETF would be rejected outright at the last moment. 

He later added that, if the SEC issues a complete denial, fund issuers might follow in the footsteps of crypto asset manager Grayscale and launch a separate lawsuit against the regulators.

“People have spent too much money and tried too hard to give up now. So yeah, it would not be over. I don’t even think there’d be a cooling-off period this time. I think there’d be hell,”