Bitcoin ETF Applications May Be Rejected, If SEC Needs 'More Time'
According to Bloomberg analyst Eric Balchunas, there is a small chance that the SEC will reject ETF applications: "It would be the shock of the decade."
While the odds of this happening are very low, the U.S. Securities and Exchange Commission could further delay the approval of spot Bitcoin ETFs, Bloomberg analyst Eric Balchunas warned.
Notably, both Balchunas and his colleague James Seyffart estimate a 10% chance that the ETF will not be approved by January 10: "I would say that if it doesn't get approved within the next couple of weeks, it will be primarily because the SEC needs more time. [...] In our opinion, there is a 90% chance that ETFs will be approved. [...] However, I don't think we will see an outright rejection."
On the other hand, says Balchunas, the efforts made so far by both the SEC and the ETF issuers make it unlikely that the requests will be rejected at the last moment: "It would be the plot twist of the decade. [...] Everyone has very busy, especially during the holidays. At this point, a refusal would be nothing short of sadistic."
Balchunas believes that if the SEC were to issue a final rejection, ETF issuers could follow in Grayscale's footsteps and sue the regulator: "These companies have spent too much time and too much money to give up now. So yes, certainly this story it wouldn't end with a single rejection from the SEC. [...] All hell would break loose."
Vetle Lunde, an analyst at cryptocurrency research firm K33 Research, offered a similar perspective to Balchunas in a Jan. 2 report: In his opinion, there is just a 5% chance that ETF approvals will be delayed .
-Tom Mitchelhill, Cointelegraph-
