An Analyst Examines SEC’s Decision on Bitcoin ETF and Delves into the Latest Ongoing Developments

The approval of a spot Bitcoin ETF has been highly anticipated in the cryptocurrency industry. While many analysts and experts predicted a high chance of approval, there are still uncertainties surrounding the matter.

Over the past year, the Securities and Exchange Commission (SEC) has received numerous applications for Bitcoin ETFs. However, all of them have been rejected due to concerns about market manipulation and volatility. The SEC also sees Bitcoin ETFs as a unique asset that could be easily controlled.

In recent months, there have been renewed hopes for approval as prominent players in the industry, such as Fidelity and VanEck, have filed applications for physically-backed Bitcoin ETFs. These proposals differ from previous ones as they allow investors to buy and sell shares that directly track the price of Bitcoin.

Recent developments have caused a lot of hype in the industry. While many analysts predicted positive outcomes, Bloomberg ETF analyst Eric Balchunas mentioned that there is still a small chance that the SEC could reject the approval, which would be a significant setback. However, he believes that it is unlikely to happen this month, as the SEC seems to be taking more time to make a decision rather than outright rejecting the proposal.

Balchunas also stated that the SEC’s thorough examination of Bitcoin ETF issues makes it unlikely for the approval to be rejected at the last moment. This is why he and his colleague ETF analyst James Seyffart have not increased the odds past a 90% possibility of acceptance by January 10.

Overall, the industry is eagerly awaiting the decision of the SEC regarding the spot Bitcoin ETF approval. The outcome will have a significant impact on the cryptocurrency market.

Tags: Bitcoin ETF, Crypto news

Leave a Reply

Your email address will not be published. Required fields are marked *