Cryptocurrency analyst Nate Geraci has revealed {that a} rejection of a Bitcoin Spot Exchange-Traded Fund (ETF) by the SEC may result in a considerably damaging impact on the complete cryptocurrency market.
Bitcoin Spot ETF Denial To Impact The Crypto Space
Nate Geraci took to his official X (previously Twitter) deal with to share his optimism on the affect of a Bitcoin Spot ETF if rejected. The analyst’s current prediction got here amidst the current bearish sentiment encompassing the crypto asset and market.
According to him, if the United States Securities and Exchange Commission (SEC) denies a Bitcoin Spot ETF, it may result in a significant rug pull in cryptocurrency. He asserted that if an ETF shouldn’t be accepted in January, the rug pull shall be one of many “bigger rug pulls” in crypto historical past.
This is as a result of important affect that the anticipation of an ETF approval has had on the complete crypto market these days. The impending determination, which is anticipated to take place next month, may additionally mark a turning level within the acceptance of cryptocurrencies in conventional finance.
Nate additionally highlighted on his X put up a 100% risk of a Bitcoin ETF approval by the SEC. “Not my base case, but can’t entirely rule out given history here, which is why I said close to 100%,” he famous.
The crypto analyst’s projections in direction of the approval of an ETF haven’t modified over time. In August, Geraci additionally predicted the identical share risk of a Spot Bitcoin ETF approval by the SEC.
He identified a number of courtroom victories by Grayscale over the regulatory watchdog and a COIN SSA. This is in the end why he believes the percentages of the product being accepted are 100%.
If the SEC approves an ETF, the cryptocurrency market, which remains to be recovering from the bear market in 2022, would profit enormously from it. There is a rising narrative concerning the potential institutionalization of Bitcoin, drawing comparisons to the early 2000s adoption of Gold exchange-traded funds (ETFs).
The SEC Chairman Confirms “New Look” At Applications
The SEC chairman Gary Gensler has not too long ago asserted that the fee is taking a “new look” on the pending Bitcoin Spot ETF purposes. Gensler’s assertion factors to the concept that the SEC could also be attempting to proceed with the purposes appropriately in the mean time.
He referred to the Commission’s earlier rejection of purposes, however that it was compelled to alter its thoughts as soon as the courtroom grew to become concerned. This is due to the courtroom’s determination within the Grayscale case when it dominated in favor of the agency’s $GBTC conversion over the SEC’s determination.
The asset supervisor’s declare that there’s a correlation between the futures and spot markets was accepted by the courtroom within the Grayscale case. Consequently, this has compelled the SEC to reevaluate Grayscale’s software and presumably different issuers.
Featured picture from iStock, chart by Tradingview.com
