SEC Bitcoin ETF denial grabs attention

The recent denial by the U.S. Securities and Exchange Commission (SEC) of the Bitcoin Exchange-Traded Fund (ETF) has generated significant interest among cryptocurrency enthusiasts. This decision, which disallows the creation of a Bitcoin ETF, has implications for the future of the cryptocurrency market. In this article, we discuss the SEC’s rationale behind the denial and the potential impact it may have on the broader adoption of Bitcoin. Stay updated with the latest developments and insights in the world of cryptocurrencies by reading this informative piece.

Title 1: SEC Under Pressure to Approve Spot Bitcoin ETF as Court Rules in Favor of Grayscale Investments
Title 2: Political Pressure Mounts as Experts Speculate on Gary Gensler’s Role in Blocking Bitcoin ETF

In recent developments, the US Securities & Exchange Commission (SEC) is facing increasing pressure to approve spot Bitcoin ETFs. This pressure is coming not only from lawmakers but also from players within the traditional financial (TradFi) sector. Reports circulating on the Internet suggest that the SEC is feeling the heat after a recent court loss, and as a result, they are seeking time to review the final verdict before coming to a resolution.

To address the mounting pressure, there is a possibility that the SEC may choose to be diplomatic and set aside their opinion. By doing so, they would retreat from their losing position without significantly impacting the approval of the spot Bitcoin ETF. In fact, Bloomberg Intelligence Analysts have increased the chances of approval from 65% to 75% following a court ruling in favor of Grayscale Investments.

Interestingly, while the SEC has no intention of converting the Grayscale Bitcoin Trust into an ETF, the panel of judges has instructed them otherwise. The verdict is now under consideration by the Commission, and the public can expect further updates in the coming days once the SEC has reviewed the application.

Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, stated that the court ruling in favor of Grayscale was not entirely surprising. He emphasized that the decision provided clarity and rebuked the SEC’s reasons for denial. Balchunas drew a parallel by comparing it to predicting the New England Patriots to win the Super Bowl, suggesting that Grayscale’s victory was a sure bet.

Amidst these developments, there are growing calls to fire Gary Gensler, the current chair of the SEC. US Rep. Patrick McHenry took to social media to highlight how each of Gensler’s moves is falling apart under court scrutiny, specifically referring to actions taken against the digital asset ecosystem. US Rep. Warren Davidson has also voiced his support for Gensler’s dismissal.

Speculation has surfaced regarding Gensler being under political pressure to block Bitcoin ETFs. Steven McClurg, a Chief Investment Officer from Valkyrie, echoed this sentiment, suggesting that the charge against ETF approval is being driven by Elizabeth Warren, a vocal opponent of cryptocurrencies.

Warren’s anti-crypto stance could potentially exert negative pressure on the crypto sphere, mainly by citing anti-crypto statements. While supporters believe that her actions may temporarily hinder progress, they maintain that her words will ultimately not have a significant impact.

In conclusion, the SEC finds itself at a crucial juncture as the spotlight intensifies on the approval of spot Bitcoin ETFs. With the court ruling in favor of Grayscale Investments and mounting political pressure, the coming days will reveal the Commission’s stance and shed light on the future of Bitcoin ETFs in the United States.

Leave a Comment

Google News