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Cryptocurrency analyst Nate Geraci has revealed {that a} rejection of a Bitcoin Spot Exchange-Traded Fund (ETF) by the SEC may result in a considerably unfavourable impact on your complete cryptocurrency market.

Bitcoin Spot ETF Denial To Impact The Crypto Space

Nate Geraci took to his official X (previously Twitter) deal with to share his optimism on the impression of a Bitcoin Spot ETF if rejected. The analyst’s latest prediction got here amidst the latest bearish sentiment encompassing the crypto asset and market.

According to him, if the United States Securities and Exchange Commission (SEC) denies a Bitcoin Spot ETF, it may result in a significant rug pull in cryptocurrency. He asserted that if an ETF isn’t authorised in January, the rug pull might be one of many “bigger rug pulls” in crypto historical past. 

This is because of the important impression that the anticipation of an ETF approval has had on your complete crypto market these days. The impending resolution, which is anticipated to take place next month, might also mark a turning level within the acceptance of cryptocurrencies in conventional finance.

Nate additionally highlighted on his X publish a 100% risk of a Bitcoin ETF approval by the SEC. “Not my base case, but can’t entirely rule out given history here, which is why I said close to 100%,” he famous.

The crypto analyst’s projections in the direction of the approval of an ETF haven’t modified over time. In August, Geraci additionally predicted the identical share risk of a Spot Bitcoin ETF approval by the SEC.

He identified a number of court docket victories by Grayscale over the regulatory watchdog and a COIN SSA. This is finally why he believes the percentages of the product being authorised are 100%.

If the SEC approves an ETF, the cryptocurrency market, which remains to be recovering from the bear market in 2022, would profit tremendously from it. There is a rising narrative in regards to the potential institutionalization of Bitcoin, drawing comparisons to the early 2000s adoption of Gold exchange-traded funds (ETFs).

The SEC Chairman Confirms “New Look” At Applications

The SEC chairman Gary Gensler has not too long ago asserted that the fee is taking a “new look” on the pending Bitcoin Spot ETF functions. Gensler’s assertion factors to the concept the SEC could also be making an attempt to proceed with the functions appropriately in the meanwhile. 

He referred to the Commission’s earlier rejection of functions, however that it was pressured to vary its thoughts as soon as the court docket grew to become concerned. This is due to the court docket’s resolution within the Grayscale case when it dominated in favor of the agency’s $GBTC conversion over the SEC’s resolution. 

The asset supervisor’s declare that there’s a correlation between the futures and spot markets was accepted by the court docket within the Grayscale case. Consequently, this has compelled the SEC to reevaluate Grayscale’s software and presumably different issuers.

Featured picture from iStock, chart by Tradingview.com