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Mentions of Spot Bitcoin ETFs have been fixed within the crypto and conventional funding industries in latest months as many buyers wait on the SEC’s determination. However, some gamers have continually performed down the potential of Bitcoin spot ETFs taking root within the US market. 

One of those that don’t consider a Spot Bitcoin ETF will likely be accepted is John Reed Stark and based on the previous SEC lawyer, buyers in all probability shouldn’t maintain their breath ready for approval of a spot Bitcoin ETF anytime quickly. 

Chances For SEC Approval Of A Bitcoin Spot ETF Are Slim And None

John Reed Stark is a former SEC insider who served because the regulator’s chief of web enforcement, and taking to his social media account to talk on the matter, Stark laid out a number of explanation why the SEC isn’t prone to approve a Spot Bitcoin ETF regardless of being out there in different areas. 

According to him, CNBC’s latest research on the business reveals that the crypto-marketplace is completely rigged. As such, the business lacks regulatory oversight, transparency, insurance coverage, licensure, web capital necessities, and efficient shopper protections.

“Chances for SEC Approval of a Bitcoin Spot ETF Are Slim and None (And Slim Just Left Town),”  Stark wrote.

The CNBC report quoted by Stark was printed on August 2023 and the report reveals researchers on the Network Contagion Research Institute discovered that tweets from Tesla CEO Elon Musk and Twitter bots helped pump the worth of FTX-listed cash traded by Alameda Research. 

The analysis, which studied over 3 million tweets from January 1, 2019, to January 27, 2023, confirmed tweets from Elon Musk triggered costs of sure cryptocurrencies to spike by as a lot as 50% inside someday.

BTC value resting above $26,000 | Source: BTCUSD on Tradingview.com 

Stark makes use of these findings as proof for his competition that the business is popping the victims of market manipulation into the perpetrators of that manipulation. 

In his rationalization, he additionally refers back to the Greater Fool Theory, saying:

Even worse, the cryptoverse has remodeled victims into victimizers, drafting and enlisting the mammoth social media horde to function unwitting troopers of fortune (with out even having the decency to pay their legions any compensation or army scrip).

Current Situation Of Spot Bitcoin ETFs

The SEC has accepted a number of Bitcoin Futures ETFs, however repeatedly rejected functions for Spot Bitcoin ETFs. While skeptics like Stark consider the rejections will proceed, different gamers have had a constructive mindset. 

According to Fundstrat co-founder Tom Fundstrat, approval of Spot Bitcoin ETFs might push the worth of Bitcoin as much as $150,000 or extra, as it might pave the way in which for mainstream adoption and usher in a brand new wave of buyers.

On the opposite hand, recent applications of Ethereum ETFs have been rumored to have a greater likelihood of approval from the SEC. 

Featured picture from Unsplash, chart from Tradingview.com