Is the Approval of Spot Bitcoin ETF in Doubt? SEC Contemplates ‘Additional Time’ for Spot Bitcoin ETFs

According to Bloomberg ETF analyst Eric Balchunas, the Securities and Exchange Commission (SEC) may choose to delay rather than reject Spot Bitcoin exchange-traded funds (ETFs). Balchunas and fellow analyst James Seyffart maintain a 90% chance of approval by January 10, but acknowledge a 10% possibility of the SEC needing additional time instead of outright rejection.

Balchunas warns that if approval is not granted within the next two weeks, it could be due to the SEC requiring more time. He describes this scenario as the “rug pull of the decade.” He believes that the extensive efforts made by the SEC and Bitcoin ETF issuers make a last-minute rejection unlikely. Balchunas acknowledges the dedication shown during the holiday season, stating that it has been a significant undertaking.

In the event of a rejection, Balchunas speculates that fund issuers may take legal action against the SEC, similar to Grayscale’s response in the past. He suggests that the substantial investments and efforts made in pursuing the ETF would likely result in a strong response, with no cooling-off period. The tension is mounting as the SEC continues to collect public feedback on the filings, with some submissions advocating for outright rejection based on concerns about Bitcoin’s decentralized nature attracting authoritarian regimes.

The crypto community anxiously awaits the SEC’s decision, and the possibility of the SEC needing more time adds further uncertainty to the already intense spotlight on Spot Bitcoin ETFs. The outcome of this regulatory drama could have significant implications for the crypto landscape.