Cryptocurrency analyst Nate Geraci has revealed {that a} rejection of a Bitcoin Spot Exchange-Traded Fund (ETF) by the SEC may result in a considerably damaging impact on your complete cryptocurrency market.

Bitcoin Spot ETF Denial To Impression The Crypto House

Nate Geraci took to his official X (previously Twitter) deal with to share his optimism on the influence of a Bitcoin Spot ETF if rejected. The analyst’s current prediction got here amidst the current bearish sentiment encompassing the crypto asset and market.

In response to him, if america Securities and Change Fee (SEC) denies a Bitcoin Spot ETF, it may result in a significant rug pull in cryptocurrency. He asserted that if an ETF will not be authorized in January, the rug pull can be one of many “bigger rug pulls” in crypto historical past.

That is as a result of important influence that the anticipation of an ETF approval has had on your complete crypto market currently. The approaching resolution, which is anticipated to take place next month, may mark a turning level within the acceptance of cryptocurrencies in conventional finance.

Nate additionally highlighted on his X submit a 100% risk of a Bitcoin ETF approval by the SEC. “Not my base case, but can’t entirely rule out given history here, which is why I said close to 100%,” he famous.

The crypto analyst’s projections in direction of the approval of an ETF haven’t modified over time. In August, Geraci additionally predicted the identical proportion risk of a Spot Bitcoin ETF approval by the SEC.

He identified a number of court docket victories by Grayscale over the regulatory watchdog and a COIN SSA. That is in the end why he believes the percentages of the product being authorized are 100%.

If the SEC approves an ETF, the cryptocurrency market, which remains to be recovering from the bear market in 2022, would profit enormously from it. There’s a rising narrative concerning the potential institutionalization of Bitcoin, drawing comparisons to the early 2000s adoption of Gold exchange-traded funds (ETFs).

The SEC Chairman Confirms “New Look” At Functions

The SEC chairman Gary Gensler has just lately asserted that the fee is taking a “new look” on the pending Bitcoin Spot ETF functions. Gensler’s assertion factors to the concept the SEC could also be making an attempt to proceed with the functions appropriately in the mean time.

He referred to the Fee’s earlier rejection of functions, however that it was pressured to alter its thoughts as soon as the court docket turned concerned. That is due to the court docket’s resolution within the Grayscale case when it dominated in favor of the agency’s $GBTC conversion over the SEC’s resolution.

The asset supervisor’s declare that there’s a correlation between the futures and spot markets was accepted by the court docket within the Grayscale case. Consequently, this has compelled the SEC to reevaluate Grayscale’s utility and presumably different issuers.