Spot Bitcoin ETF Approval in Doubt? as SEC Considers ‘More Time’ For Spot Bitcoin ETFs

The post Spot Bitcoin ETF Approval in Doubt? as SEC Considers ‘More Time’ For Spot Bitcoin ETFs appeared first on Coinpedia Fintech News

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

While Bloomberg ETF analyst Eric Balchunas and fellow analyst James Seyffart maintain a 90% chance of approval by January 10, the remaining 10% factor in the possibility of the SEC wanting additional time rather than delivering a definitive rejection. 

Balchunas cautions that if the approval doesn’t come within the next two weeks, it might be attributed to the SEC needing more time, describing such a move as the “rug pull of the decade.”

Balchunas emphasizes that the substantial effort invested by both the SEC and Bitcoin ETF issuers makes an outright rejection at the last moment improbable. He acknowledges the dedication demonstrated during the holiday season, describing it as a significant undertaking.

“This would be the rug pull of the decade. Everybody put in a lot of work in this, especially over the holidays. Sadistic might not even be strong enough a word for it,” notes Balchunas.

Calls for Rejection

In the event of an outright denial, Balchunas speculates that fund issuers might take legal action against the SEC, similar to the response of crypto asset manager Grayscale in the past. 

He believes that the substantial investments and efforts made in the ETF pursuit would likely result in a vehement response, stating, “I don’t even think there’d be a cooling-off period this time. I think there’d be hell.”

As the SEC continues to collect public feedback on the filings, recent submissions express a desire for outright rejection. One letter, received on January 2, argues that Bitcoin’s decentralized nature could attract authoritarian regimes seeking to evade sanctions and exert control.

The tension builds as the crypto community waits on the SEC’s decision, with the potential for a ‘more time’ stance adding 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.