Cryptocurrency analyst Nate Geraci recently expressed concerns about potential repercussions in the crypto market if the SEC rejects a Bitcoin Exchange-Traded Fund (ETF).
According to Geraci, if the SEC denies approval of Bitcoin Spot ETFs in January, it could trigger one of the “largest pullbacks” in the history of cryptocurrencies. The rationale behind this prediction is attributed to the significant impact that the anticipation of ETF approval has had on the entire market and community in recent times. The possible denial of all existing requests could further accentuate the impact due to the high expectations generated.
At the time of writing this article, according to data published on CoinMarketCap, BTC is trading at $41,184 per unit. It has recently experienced a negative session, losing 1.48% of its value in the last 24 hours. The same trend extends throughout the week, during which it lost up to 2.15% of its value. Its market capitalization is approximately $805 billion, and its trading volume, which increased by 57% compared to the previous day, reaches $22.5 billion.
If spot bitcoin ETF not approved in January, might be one of bigger rug pulls in crypto history…
Not my base case, but can’t entirely rule out given history here (which is why I said *close* to 100%).
That said, sticking w/ my original pre-Grayscale court victory prediction. https://t.co/zhlLDgMlzw
— Nate Geraci (@NateGeraci) December 18, 2023
In his message on the X platform, Geraci pointed out that there is a close to 100% chance that the SEC will approve a Bitcoin ETF. While he clarifies that this is not his primary scenario, he doesn’t completely rule out this possibility, emphasizing the importance of history in this context.
The analyst also emphasizes that, in the event of approval, the market, which is still recovering from the bearish period in 2022, would experience substantial benefits. There is a growing narrative about the institutionalization of Bitcoin, drawing comparisons to the adoption of gold exchange-traded funds in the 2000s.
The SEC’s Decision Could Deal a Decisive Blow to Bitcoin or Send It to the Sky
The recent confirmation by SEC Chairman Gary Gensler of a “new look” at pending Bitcoin Spot ETF applications adds further uncertainty to the process. Gensler refers to the Commission’s previous decisions and how judicial interventions, as in the case of Grayscale, have influenced the SEC’s reconsiderations.
In theory, in less than a month, we could witness the official launch of the first Bitcoin spot ETF and experience a bullish resurgence not only for BTC but for all cryptocurrencies. Significant institutional investors engaging in crypto investments will attract more and more people to opportunities and confidence backed by these institutional financial giants.
