The cryptocurrency community is on edge as the U.S. Securities and Exchange Commission (SEC) approaches a critical decision on the approval of a physically-backed Bitcoin exchange-traded fund (ETF).
Prominent analyst Nate Geraci recently opined about the potential impact of the SEC’s decision, predicting a significant market pullback if the ETF is not approved. “If spot bitcoin ETF is not approved in January, might be one of bigger rug pulls in crypto history,” he noted.
That said, the analyst is still convinced that the odds of such a product being greenlit by the SEC are close to 100%.
This looming decision, which is expected to happen next month, could be a watershed moment for the integration of cryptocurrencies into traditional finance.
A critical deadline
The cryptocurrency market recently saw a major rally, with the Bitcoin price reaching $45,000 for the first time since 2022.
This increase is driven by optimism that the SEC will approve the ETF application filed by Cathie Wood’s ARK Investment and 21Shares, among others.
An approval would be a significant boost for the crypto industry, still recovering from the FTX exchange collapse in 2022. Wall Street giants like BlackRock, Invesco, and Fidelity have entered the fray.
Analysts are optimistic. Bloomberg Intelligence has estimated that the spot-Bitcoin ETF market could grow into a $100 billion juggernaut.
The potential institutionalization of Bitcoin is a narrative gaining traction, with parallels drawn to the adoption of gold ETFs in the early 2000s.
The market remains at a crossroads
However, the market is not without its concerns. Bitcoin is currently hovering near the $40,000 mark, according to CoinGecko data.
The SEC’s rejection of the ETFs could trigger a significant downturn. The industry is at a crossroads, with the SEC’s decision having the potential to either bolster or buffet the nascent market.
Source: https://u.today/sec-denial-of-bitcoin-etf-might-result-in-one-of-biggest-crypto-rugpulls-analyst-predicts