Türkçe
Español
As the deadline for the Securities and Exchange Commission’s (SEC) decision on the Bitcoin exchange-traded fund (ETF) approaches, analysts maintain a cautious optimism with Bloomberg’s Eric Balchunas and James Seyffart giving a 90% chance of approval by January 10. Despite the optimism, analysts hesitate to push the probabilities above 90%, expressing concerns that the SEC is seeking more time rather than issuing a definitive rejection.
Comments from Bloomberg Analyst on SEC Decision
The Bloomberg analyst particularly emphasizes that the absence of a certain approval percentage above 90% stems from the perceived need for additional time by the SEC. The confidence to avoid outright rejection is highlighted by the significant efforts expended by both the regulatory body and Bitcoin ETF issuers. The Bloomberg analyst goes so far as to describe a direct rejection at this stage as a potential conflict of the decade, emphasizing the magnitude of the consequences such a move could entail.
Vetle Lunde from K33 Research also echoes this sentiment in a recent market report, stating that the probability of the ETF being completely rejected is only 5%. The consensus among analysts indicates that the likelihood of approval weighs much more heavily than that of rejection. Despite the dominance of optimism, there remains a cloud of uncertainty, especially following a hypothetical outright denial. Balchunas thinks that fund providers might emulate crypto manager Grayscale and initiate legal action against the SEC.
If this scenario were to occur, it could lead to a swift reaction rather than a typical period of calm. Analysts argue that holders have invested too much time and resources to easily give up on the Bitcoin ETF quest. Public sentiment reflected in comments sent to the SEC reveals diverging opinions. The latest presentations made as of January 2 clearly advocate for the outright rejection of ETFs.
Expectations in the Cryptocurrency Market
As the industry awaits the SEC’s decision, it closely monitors potential changes in market regulatory dynamics. The coming weeks are set to reveal whether the SEC will greenlight the Bitcoin ETF and potentially create new opportunities for crypto investment within traditional financial structures. Alternatively, the SEC may prefer to extend the industry’s anticipation by engaging in further negotiations. Regulatory developments play a significant role in the constantly evolving cryptocurrency space.
The crypto community’s expectation reflects the significance of this decision. Stakeholders are preparing for potential legal battles in the event of a rejection while also hoping for a milestone approval. As the SEC’s deadline approaches, the crypto community continues to engage by presenting various perspectives to the regulatory body. Whether the ETF is approved, delayed, or outright rejected could have significant implications for the cryptocurrency market and its participants.
