Renowned analysts and researchers are at odds regarding the SEC’s upcoming decision on a U.S.-listed Bitcoin spot ETF.
Matrixport, a leading digital asset management firm, has published a research report outlining reasons why the U.S. regulator might reject the applications for a Bitcoin spot ETF in January.
Reasons For Bitcoin ETF Possible Denial
The Matrixport report indicates a persistent failure of all Bitcoin spot ETF proposals to meet a crucial requirement, despite continuous interactions between ETF applicants and SEC staff, along with repeated application reviews.
While acknowledging the potential for meeting approval criteria by Q2 2024, Matrixport predicts an SEC rejection of all proposals.
The report attributes this outlook to the influence of the current Democratic-led SEC voting leadership. Alongside, SEC’s chairman Gensler’s recent comments suggest a preference for stricter crypto industry compliance.
Additionally, the report argues that there is limited political motivation to approve a Bitcoin Spot ETF. This is because it would legitimize Bitcoin as an alternative store of value.
Bloomberg Senior ETF Analyst Disagrees
Contrary to the notion of a potential rejection, Eric Balchunas, a senior ETF analyst for Bloomberg, expressed disagreement.
In a Wednesday tweet, he countered the argument, stating that he and other analysts with insider knowledge have not encountered any information suggesting anything other than a potential approval.
Balchunas pointed out the contradiction with mainstream news reporters who claim inside sources supporting approval, adding that a rejection would challenge a significant amount of reliable intelligence, making it less probable.
He suggested that any rejection would stem from the SEC’s wanting more time rather than an outright dismissal.
Currently bitcoin trades at $42621 per token.