Cryptocurrency analyst Nate Geraci has stated that if the SEC rejects a Bitcoin Spot Exchange-Traded Fund (ETF), it could have a significantly negative impact on the entire cryptocurrency market.
Bitcoin Spot ETF Denial To Impact The Crypto Space
Nate Geraci expressed his belief that the rejection of a Bitcoin Spot ETF could lead to a major rug pull in the cryptocurrency market. He emphasized that the anticipation of an ETF approval has greatly influenced the entire crypto market, and a denial could result in one of the “bigger rug pulls” in crypto history. The decision is expected to be made next month and could signify a turning point in the acceptance of cryptocurrencies in traditional finance.
Giving insight into the possibility of a Bitcoin ETF approval by the SEC, Nate underscored a nearly 100% likelihood of approval. He pointed out that his projections have remained consistent over time, citing previous predictions of the same possibility in August. He also highlighted Grayscale’s court victories over the regulatory watchdog as a key factor in his belief of a 100% approval possibility.
If the SEC were to approve an ETF, it would greatly benefit the cryptocurrency market, which is still recovering from the bear market in 2022. There’s a growing narrative about the potential institutionalization of Bitcoin, drawing comparisons to the adoption of Gold exchange-traded funds (ETFs) in the early 2000s.
The SEC Chairman Confirms “New Look” At Applications
SEC chairman Gary Gensler recently mentioned that the commission is taking a “new look” at the pending Bitcoin Spot ETF applications. This suggests the SEC is trying to handle the applications appropriately, referring to the Commission’s previous rejections that were overturned by court decisions, such as in the Grayscale case. The court ruled in favor of Grayscale’s $GBTC conversion over the SEC’s decision, establishing a correlation between the futures and spot markets and prompting the SEC to reevaluate Grayscale’s application and possibly other issuers.
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