pioneer of cryptocurrencies bitcoin (BTC)Although it has caught an upward trend recently, it may experience a great decline with a great shock effect after the news it may receive. Here is one of the important details about the future of Bitcoin and a comparative review on its examples in history.
Bitcoin ETFs (exchange-traded funds) have been on the agenda lately, although a number of crypto-focused ETFs have been approved in the US, no direct Bitcoin ETF has yet been approved. A similar scenario has happened before. For example, after an important Bitcoin ETF application in March 2017, a “rejection” was received and Bitcoin showed a sharp decline of 20%.
Again, a similar scenario was experienced in the summer of 2018, when nine different Bitcoin ETF applications were rejected in one day. What if a similar situation occurs today? Here are the analysts’ comments.
Cryptocurrency According to experts, the rejection of a Bitcoin ETF application may experience similar events and trigger a BTC decline. This is an important detail that has been seen often before in history.
Bitcoin ETFs Pending Approval From SEC!
The U.S. Securities and Exchange Commission (SEC) has rejected many ETF applications over the years. From the first Bitcoin ETF filed by Cameron and Tyler Winklevoss in July 2013 to Fidelity’s application for “Wise Origin Bitcoin Trust” approval in March 2021, there is a long list of applications followed by rejections.
The SEC recently expressed concerns about the extreme volatility in BTC prices and the inherent risk for investors. Fans, on the other hand, are hopeful that new SEC chairman Gary Gensler will further accept cryptocurrency funds.
Although there is an optimistic mood about ETF approvals at the moment, it may take a very long time for these approvals to arrive. On the other hand, some sources state that the SEC will not approve a Bitcoin ETF this year.
Hey kid, have you ever seen the ETF rejection in 2017? I have lots of memories pic.twitter.com/pcUIYvTvYR
— Romano (@RNR_0) October 13, 2021
The rejection of the Winklevoss twins Bitcoin ETF triggered a BTC price drop of around 20%.
tl;dr on this is @BarrySilbert work @GaryGensler‘s daddy.
Grayscale has $35 billion in bitcoin AUM that must either be converted to an ETF, or SEC will allow $25 billion of investor $ to bleed to a private trust sponsor.
It’s a big game of chicken. AdvantageBarry. https://t.co/Xi3ur4982T
— Ryan Selkis (@twobitidiot) October 14, 2021
Ryan Selkis, founder of Messari Crypto, commented on Grayscale’s Bitcoin ETF implementation; He stated that the asset management giant has $35 billion in Bitcoin and that it should be converted into a Bitcoin ETF.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.