Denial of Spot Bitcoin ETF Might Impact the Industry Negatively

Popular cryptocurrency analyst Nate Geraci believes that spot Bitcoin (BTC) Exchange Traded Fund (ETF) denial will impact the broad crypto industry negatively.

Precisely, he believes that the decision against the physically-backed BTC ETF will trigger a huge rug pull in the industry. This comes as the window for a decision from the United States Securities and Exchange Commission (SEC) draws nearer. 

“If spot bitcoin ETF is not approved in January, might be one of the bigger rug pulls in crypto history,” Geraci stated. 

SEC Meets With Spot ETF Applicants 

The agency has been in discussions with some applicants for the spot Bitcoin ETF. Some officials of the SEC’s Trading and Markets division met with Grayscale about three weeks ago and their discussions were centered around potential listing matters of Grayscale’s BTC ETF. Top investment asset management firm BlackRock allegedly had a similar meeting with the regulator.

Earlier this month, the discussions advanced to include key technical details like a potential redemption model for the ETF, custody arrangements, and investor risk disclosures. This move suggests to the crypto community that the SEC is gearing towards issuing an approval.

Spot BTC ETF Approval Optimism at 90%

Similarly, crypto enthusiasts are very optimistic that the regulator will greenlight the numerous applications at the end of the day. 

Senior Bloomberg ETF analysts Eric Balchunas and James Seyffart predicted the odds of having approval at 90%. Geraci is also positive that the odds of such physically-backed BTC ETF getting approval is fast inching towards 100%.

Noteworthy, this approval will be pivotal to the crypto industry as well as the traditional financial landscape. It will boost the crypto ecosystem which is still recovering from the unfortunate collapse of FTX that left the broad industry in shambles. 

Spot Bitcoin ETF Approval to Drive in $2.4B

Bitcoin is currently trading at $40,890.68, driven by the anticipation for the spot Bitcoin ETF approval and other factors. 

More influx is expected once the SEC greenlights the offering. VanEck, a potential candidate for the approval, predicted a substantial influx of $2.4 billion into Bitcoin ETF products in the early months of next year.

On the other hand, Grayscale is carefully considering potential tax implications for spot Bitcoin ETF.