Will SEC Approve or Reject Bitcoin ETF : Bloomberg Analyst Weighs In

Amidst swirling speculations about the potential rejection of spot Bitcoin ETFs, senior Bloomberg ETF analyst Erich Balchunas remains steadfast in his optimism, dismissing negative assumptions as unfounded.

Contrary to a Matrixport report suggesting a possible SEC rejection of all ETF applications, Balchunas asserts there is no credible evidence supporting such claims.

ArkInvest Application on the Horizon

As the anticipation builds for the ArkInvest spot Bitcoin ETF application’s approval or rejection, scheduled between January 5 and January 10, market concerns have spiked. Matrixport’s Markus Theilen’s report, deviating from the market consensus favoring approval, cites failure to meet SEC requirements as grounds for a probable rejection.

Balchunas, renowned for his ETF reporting, counters these concerns, highlighting the lack of strong, reliable sources or evidence in Matrixport’s report. Despite the recent 9% drop in Bitcoin prices, resulting in over $540 million in liquidations, Balchunas maintains his expectation of approval, diverging from the prevailing industry sentiment.

Current Landscape and Market Inflows

The current landscape reflects substantial inflows triggered by market expectations for ETF approval, with $14 billion deployed into crypto since September 2023. The report warns of cascading liquidations and a potential 20% drop in Bitcoin values if the SEC rejects Bitcoin ETF.

Balchunas Stands Firm Amidst Conflicting Reports

In summary, conflicting reports have heightened market anxiety, but expectations for spot Bitcoin ETF approval remain high. Bloomberg’s Erich Balchunas stands firm in his position, emphasizing the lack of evidence supporting the contrary view.