Bloomberg Analyst Weighs In on SEC’s Decision to Approve or Reject Bitcoin ETF

Amid swirling rumors about the possible rejection of spot Bitcoin exchange-traded funds (ETFs), Erich Balchunas, a senior analyst at Bloomberg specializing in ETFs, remains unwavering in his optimism and dismisses negative assumptions as baseless.

Contrary to a report from Matrixport suggesting that the Securities and Exchange Commission (SEC) may reject all ETF applications, Balchunas asserts that there is no credible evidence to support such claims.

The market is eagerly awaiting the approval or rejection of the spot Bitcoin ETF application from ArkInvest, which is scheduled to be announced between January 5 and January 10. This has caused concerns among investors. Matrixport’s Markus Theilen, deviating from the market consensus in favor of approval, points to the failure to meet SEC requirements as grounds for a probable rejection.

Balchunas, known for his expertise in reporting on ETFs, counters these concerns by highlighting the lack of reliable sources or evidence in Matrixport’s report. Despite the recent 9% drop in Bitcoin prices, resulting in over $540 million in liquidations, Balchunas maintains his expectation of approval, going against the prevailing sentiment in the industry.

The current market landscape reflects significant inflows driven by expectations of ETF approval, with $14 billion invested in cryptocurrencies since September 2023. The report warns of potential cascading liquidations and a 20% drop in Bitcoin values if the SEC rejects the Bitcoin ETF.

In summary, conflicting reports have increased market anxiety, but expectations for the approval of spot Bitcoin ETFs remain high. Bloomberg’s Erich Balchunas remains steadfast in his position, emphasizing the lack of evidence supporting the opposing view.

Tags: Bitcoin ETF