According to Bloomberg ETF analyst Eric Balchunas, there is a small possibility that the U.S. Securities and Exchange Commission (SEC) could reject the spot Bitcoin exchange-traded funds (ETFs) if it wants more time to review them. Balchunas believes such a move would result in a “rug pull of a decade,” as it would be considered highly unusual for the SEC to backtrack on its previous decision to allow spot Bitcoin ETFs. The SEC has already postponed a decision on VanEck’s spot Bitcoin ETF proposal several times and is now expected to announce its decision by November 14. While Balchunas concedes that rejection is improbable, he warns that the SEC’s delay could be a way to cause confusion and uncertainty in the market. Balchunas also suggests that the recent approval of Bitcoin futures ETFs could potentially pave the way for the approval of spot Bitcoin ETFs. Ultimately, the fate of spot Bitcoin ETFs remains uncertain, but the industry is anxiously awaiting the SEC’s final decision.
In a surprising turn of events, there is a small chance that the SEC could reject the spot Bitcoin ETFs if it wants more time to review them. This would certainly be a “rug pull of a decade,” as the SEC has already indicated its willingness to allow spot Bitcoin ETFs. While the rejection is unlikely, the SEC’s delay in making a decision has raised concerns among market participants. Perhaps this delay is a deliberate move by the SEC to sow confusion and uncertainty in the market. Nonetheless, the approval of Bitcoin futures ETFs could be a positive sign for the spot Bitcoin ETFs, indicating a possible shift in the SEC’s stance. All eyes are now on the SEC as the industry eagerly awaits its final verdict.
