Small Chance of Bitcoin Spot ETF Launch Rejection, Says Analyst
Date: 2024-01-03 Author: Dima Zakharov Categories: BUSINESS
Eric Balchunas, an ETF analyst at Bloomberg, has expressed his view that despite being slim, there remains a small possibility of the U.S. Securities and Exchange Commission (SEC) declining the launch of Bitcoin spot ETFs. According to Balchunas, the likelihood of rejection stands at approximately 10%. This scenario could materialize if the regulator requires additional time to align the conditions for cryptocurrency fund operations. It is important to note that the definitive verdict on multiple applications for Bitcoin spot ETFs is slated for the period between January 8th and 10th.
Balchunas remarked, "I would say that if we don't see such ETFs in the next couple of weeks, it's more about the SEC needing more time rather than a fundamental rejection. However, with a 90% probability, the regulator will approve the launch of these funds."
Balchunas also emphasized that the regulator, in collaboration with various companies, has put substantial effort into aligning the conditions for launching cryptocurrency ETFs. This suggests that the regulatory leadership is mentally prepared for such funds, with only formalities remaining.
As a reminder, participants in the "ETF race" have fine-tuned and submitted their final applications for Bitcoin spot funds to the SEC and are now awaiting the regulator's ultimate decision.
