Bitcoin is inching closer to the mark of $45k. BTC was last exchanging hands at $44,104.29. This could be largely due to the speculation surrounding the approval of Bitcoin ETF applications by the SEC. Applications by the likes of BlackRock and Fidelity are expected to go through maximum by January 10, 2024.
While the entire crypto sphere waits for the moment they have craved for a long time, an analyst has come forward, asking the Commission not to approve those applications.
Dennis Kelleher, the chief executive officer of Better Markets, a non-profit venture, has asked the SEC to reject all applications. Dennis has justified this by saying that the SEC would indirectly approve all the fraud and manipulations they are there to protect customers from. He has drafted an eleven-page letter, citing that it would massively harm inventors and their funds.
He has been criticized for this statement. Bitcoin enthusiasts have said that a rejection would hurt all the efforts and energy that the crypto space has invested in getting the ETF applications approved. Additionally, it will be hurtful for the SEC staff that has invested itself in analyzing the applications.
Dennis is not the only one to have said this. A few days earlier, Matrixport published a report hinting that the SEC may reject ETF applications. The reason stated was that applications are falling short of requirements that have to be met before the US Securities and Exchange Commission can approve them. There is no specific mention of what kind of requirements are falling short, but it has been signaled that a rejection could be on its way.
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The effect was such that it sparked a crash in the crypto market. BTC fell below $42k and ETH below the $2.3k mark.
Analysts who led the Matrixport report said the applications would be eventually approved. They said that approval could happen by the second quarter of 2024.
Another reason stated by Matrixport for the rejection of the applications is that SEC Chair Gensler has been against the new crypto products for a while now. Plus, commissioners who vote on approval or rejection are mostly Democrats.
Bitcoin ETFs getting approval by the SEC will pave the way for XRP ETFs. This is speculation that awaits official confirmation. Ripple supporters are saying that if the SEC approves Bitcoin ETF applications, then it is only a matter of time before the community begins pitching for XRP ETF applications. Management firms, or issuers, are yet to come forward in this aspect. Hence, it remains speculation.
In the event that applications are denied, the community will be compelled to await the second quarter and Bitcoin Halving thereafter. The latter will reduce the token’s supply and cause its price to rise.
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The SEC has not responded to the pitch of Dennis Kelleher, the founder of Better Markets. Only 2-3 days later will everyone find out what happens to their favorite token, BTC.
