Public Opinion on Bitcoin Spot ETFs Emerges as SEC Approval Nears
Key Points
– The Securities and Exchange Commission (SEC) is set to decide on a spot Bitcoin ETF, causing anticipation and concerns within the cryptocurrency world.
– Previous Bitcoin ETF applications have been rejected due to concerns about market manipulation and Bitcoin’s volatility. However, recent proposals by big players like Fidelity and VanEck have renewed hopes.
– Analysts have varying predictions about the SEC’s decision. Bloomberg ETF analyst Eric Balchunas believes there is a 10% chance of a full rejection, but suggests that the SEC might want more time for review instead of a simple no.
– Potential legal actions could follow if the SEC issues a complete denial, with fund issuers possibly launching lawsuits against the regulators.
– Two groups have given feedback to the SEC, cautioning against the Bitcoin ETF proposal due to concerns about attracting hostile regimes.
– The outcome of the SEC’s decision could have significant implications for the future of digital assets.
Article:
The Securities and Exchange Commission (SEC) is preparing to make a decision on a spot Bitcoin ETF, causing a mix of hope and apprehension in the cryptocurrency community. While many are optimistic about the approval, there are still concerns that need to be addressed.
In the past, the SEC has rejected several Bitcoin ETF applications due to worries about market manipulation and the volatility of Bitcoin. They have also viewed Bitcoin ETFs as a new and vulnerable asset. However, recent proposals by major players like Fidelity and VanEck, which focus on physically-backed Bitcoin ETFs, have sparked new hopes.
Unlike previous proposals, these new ones allow investors to trade shares that closely track Bitcoin’s price. This development has attracted attention from industry experts and analysts who have made various predictions about the SEC’s decision.
Bloomberg ETF analyst Eric Balchunas recently stated that while it is unlikely, there is still a 10% chance that the SEC could reject the Bitcoin ETF proposal. He believes that a full rejection this month is unlikely, and suggests that the SEC might need more time for review instead of a simple no. Balchunas shared his views during a discussion with Cointelegraph.
Balchunas also expressed concerns about potential legal actions if the SEC issues a complete denial. He mentioned that fund issuers might follow the example set by crypto asset manager Grayscale and file a separate lawsuit against the regulators. According to Balchunas, people have invested too much money and effort into this matter to give up easily.
Recently, two groups provided feedback to the SEC, urging caution regarding the Bitcoin ETF proposal. One of the arguments made is that Bitcoin’s decentralized nature could attract hostile regimes seeking to bypass sanctions or exert control over their citizens.
As the SEC’s decision date approaches, the cryptocurrency community is closely monitoring the situation. The outcome of the decision could have significant implications for the future of digital assets.