Bitcoin ETF: Navigating the Perils of SEC Rejection and Fierce Opposition from Funds

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A recent court order has directed the Securities and Exchange Commission (SEC) to reconsider its denial of Grayscale’s Bitcoin exchange-traded fund (ETF) application, offering a ray of hope to crypto investors. However, the implications of both an approval or rejection of a Bitcoin ETF by the SEC are significant. This article delves into the potential outcomes and their ramifications on the cryptocurrency market.

The Potential Impact of SEC Approval: Anticipation runs high among investors and industry experts regarding a potential surge in Bitcoin and cryptocurrency values upon SEC approval of a Bitcoin ETF. Nicholas Scherling, CEO of DeCryptoFi, predicts a rapid price escalation. Nevertheless, it’s essential to remember that SEC approval is not assured, leaving the market response uncertain.

The Potential Consequences of SEC Rejection: On the flip side, a rejection by the SEC could trigger a substantial drop in Bitcoin prices. Nate Geraci, President of ETF Retailer and co-founder of ETF Institute, warns of a potential “crypto history rug pull,” underscoring the crypto market’s vulnerability and potential volatility.

Challenges Faced by Institutional Financiers: The SEC’s rigorous requirements for a Bitcoin ETF pose difficulties for institutional financiers. Instead of “in-form” structured ETFs, the SEC insists on “cash impact” ETFs, which may result in increased tax liabilities for issuers and potential cost hikes for clients. This ongoing tug-of-war between funds and regulators could further delay Bitcoin ETF approval beyond January.

Threats to Crypto Exchanges: The introduction of a Bitcoin ETF could have far-reaching implications for crypto exchanges. Eric Balchunas, Senior Bloomberg ETF Analyst, humorously suggests that a Bitcoin ETF would “unleash the Power of One (basis point)” in trading fees. Nate Geraci counters, stating that this could potentially lead to a “bloodbath for crypto exchanges,” highlighting the potential disruption to the existing market structure.


ETF Newz Says:

The SEC’s reevaluation of Grayscale’s Bitcoin ETF application has reignited hope among crypto investors, but the outcome remains uncertain with the market poised for a significant response. Understanding the potential consequences of both approval and rejection of a Bitcoin ETF is crucial. The ongoing regulatory battle and its potential impact on crypto exchanges add layers of complexity to the situation. As the crypto market continues to evolve, staying informed and prepared for industry shifts is imperative.


Maintain Your Horses! A Space Bitcoin ETF May perhaps well also Already Be Priced into Crypto.

There is a growing belief that the recent price surge in bitcoin could already factor in the potential approval of a spot Bitcoin ETF- a pivotal strategic investment move that holds significant influence in the crypto market. Investors and financial enthusiasts alike are keenly awaiting regulatory approval, a decision that could potentially catalyze the future growth trajectory of bitcoin prices. This speculation underscores not only the potential value that bitcoin holds as a digital asset but also the evolving role of institutional reactiveness in the cryptocurrency landscape.

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