Cryptocurrency analyst Nate Geraci has revealed that the rejection of a bitcoin Spot Exchange Traded Fund (ETF) by the SEC could have a significantly negative effect on the entire cryptocurrency market.
bitcoin Spot ETF Denial Will Impact crypto Space
Nate Geraci took to his official X account (formerly Twitter) to share his optimism about the impact of a bitcoin spot ETF if it is rejected. The analyst's recent prediction came amid the recent bearish sentiment encompassing the market and crypto assets.
According to him, if the United States Securities and Exchange Commission (SEC) denies a bitcoin spot ETF, it could lead to a major drop in cryptocurrencies. He stated that if an ETF is not approved in January, the rug-pulling will be one of the “largest rug-pullings” in cryptocurrency history.
This is due to the significant impact that the anticipation of ETF approval has had on the entire crypto market lately. The imminent decision, which is expected to be adopted place next monthIt may also mark a turning point in the acceptance of cryptocurrencies in traditional finance.
Nate also highlighted in his X post a 100% chance of the SEC approving a bitcoin ETF. “It's not my base case, but I can't completely rule out the story here, which is why I said close to 100%,” he noted.
The crypto analyst's projections towards the approval of an ETF have not changed over time. In August, Geraci also foretold the same percentage chance that the SEC will approve a Spot bitcoin ETF.
He pointed to several Grayscale court victories over the regulatory watchdog and a COIN SSA. Ultimately, this is why he believes the chances of the product being approved are 100%.
If the SEC approves an ETF, the cryptocurrency market, which is still recovering from the bear market in 2022, would benefit greatly. There is a growing narrative about the possible institutionalization of bitcoin, drawing comparisons to the adoption of the early 2000s. Gold Exchange-traded funds (ETFs).
SEC Chairman confirms “new look” at applications
The chairman of the SEC Gary Gensler recently has he claimed that the commission is taking a “fresh look” at pending bitcoin Spot ETF applications. Gensler's statement points to the idea that the SEC may be attempting to proceed with the applications appropriately at this time.
She referred to the Commission's previous rejection of applications, but that it was forced to change its mind once the court intervened. This is due to the court's decision in the Grayscale case when it ruled in favor of the company. $GBTC Conversion about the SEC's decision.
The asset manager's claim that there is a correlation between the futures and spot markets was accepted by the court in the Grayscale case. Consequently, this has forced the SEC to reevaluate Grayscale's application and possibly that of other issuers.
Featured image from iStock, chart from Tradingview.com
