Impact of possible rejection on spot Bitcoin ETFs

Thielen's expectation of the rejection of spot bitcoin ETFs has significant implications for the crypto industry. Big names like BlackRock, Fidelity, Franklin Templeton, Valkyrie and VanEck, among others, have been waiting for SEC approval to launch their own ETFs.

In the event of rejection, Thielen anticipates a cascade of liquidations that could unwind billions of dollars in bitcoin long perpetual futures. This situation, according to their estimates, could lead to a 20% drop in the price of bitcoin, placing it in the range of $36,000 to $38,000. Currently, Bitcoin is trading at $42,425, according to Coingecko