Spot Bitcoin-ETF: Approval or Rejection?
On January 10, the U.S. Securities and Exchange Commission (SEC) is expected to make a decision on applications to launch spot bitcoin-ETFs. In anticipation of this event, the opinions of the crypto community are divided.
ETF approval
Experts interviewed by Bloomberg believe that the probability of approval of applications is high. This is indicated, in particular, by the SEC Education Department's warning to retail investors about the risks associated with digital assets. According to experts, this may indicate the regulator's readiness to approve one or more spot bitcoin-ETFs in the near future.
Predictions
Supporters of ETF approval expect this event to lead to an increase in bitcoin prices. Thus, analysts at CryptoQuant suggested that quotes of the asset could rise to $54,000. Co-founder of Morgan Creek Digital Anthony Pompliano believes that the launch of the tool will not lead to a sharp rise in the price of the first cryptocurrency, but will contribute to its long-term growth.
"When a tsunami of buying meets fixed supply, the price only moves in one direction," commented Taproot Wizards CEO Dan Held.
"A rising tide lifts all boats," pointed out Nansen CEO Alex Svanewyk.
"A new sense of confidence is emerging," predicted Bybit co-founder and CEO Ben Zhou.
"Investors are still seriously underestimating the potential impact of product endorsement," said Framework Ventures co-founder Michael Anderson.
"The biggest change is the legitimacy of the bitcoin-ETF for pension funds, RIAs, mutual funds and other conservative funds," explained Cinneamhain Ventures Managing Partner Adam Cochran.
"Approval of the product will lead to a bridge between DeFi and TradFi," said ETF Store head Nate Geraci.
Opponents of the approval
Some experts believe that the approval of the ETF will have negative consequences for the cryptocurrency market. In particular, it could lead to increased speculation and volatility in the market. In addition, opponents of ETF approval fear that it may contribute to the legalization of cryptocurrencies and their use for criminal purposes.
"Approving spot cryptocurrency ETFs would be a 'serious historical' mistake," Better Markets said.
"Approving the product would result in significant risks for investors," the organization's analysts said.
"Cryptofirms will be able to talk about the U.S. government's recognition of the asset," the analysts said.
"There remains a small chance that the SEC will deny applications for such funds to gain additional time to work out the legal rules for such products," they added.
The SEC's decision on applications to launch spot bitcoin-ETFs could have a significant impact on the cryptocurrency market. If the applications are approved, this event could lead to an increase in bitcoin prices and accelerate its institutionalization.