According to a recent discussion, analysts are contemplating a potential mass denial of spot Bitcoin exchange-traded fund (ETF) applications by SEC Chair Gary Gensler.
A conversation on Twitter involving Bloomberg’s ETF analysts James Seyffart and Eric Balchunas, along with ETF commentator Dave Nadig, speculated on Gensler’s possible last-minute denial of the mounting Bitcoin ETF applications. Nadig questioned whether this potential scenario could be a “semi-comedic rug-pull.”
Nadig commented, “I’m sure it will be much more boring than this — but sometimes it does feel like this is all a setup for a giant Gensler semi-comedic rug-pull.” Seyffart admitted the thought has “lingered” in his mind, while Balchunas described the idea as “amazingly sadistic.”
Despite the speculation, both the analysts view the possibility as remote, but concede that a last-minute denial cannot be ruled out completely. This hesitation is why they haven’t raised approval odds above 90%.
Since his appointment in 2021, Gensler’s SEC has either delayed, denied, or pushed back spot Bitcoin ETF product applications, citing investor protection concerns. To date, the SEC has only approved ETF applications for Bitcoin and Ether futures products, asserting that spot products lack sufficient safeguards against market manipulation.
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