Bitcoin ETFs to a brilliant Gensler ‘rugpull?’ Are you heading? Analysts weigh in.
In an “incredibly sad” move, US Securities and Exchange Chief Gary Gensler said the chances of attracting bitcoin (BTC) trading funds are slim, according to Bloomberg ETF analysts.
In an Oct. 31 tweet by top Bloomberg ETF analysts James Seifert and Eric Balchunas, ETF analyst Dave Nadig Gensler once asked, “Will Bitcoin ETF applications be allowed to be piled on a semi-ridiculous rug to deny?” – Drag it.”
“I'm sure it would be more boring than that — but sometimes I feel like this is all a giant Gensler semi-funny rug-pulling,” Nadig said.
I'm sure it gets more boring than this — but sometimes it feels like it's all just a set-up for a giant Gensler semi-funny carpet-pulling.
— Dave Nadig (@DaveNadig) October 30, 2023
In response to the comment, Seifert admitted that the idea of such a scenario had been in his mind “for weeks, if not months.” “It's going to be absolutely amazing on his part,” Seifert added.
Balchunas also chimed in, describing the carpet-dragging as “incredibly sad” and possibly “triggering.” [a] A wave of lawsuits,” he responded.
However, while both commentators argue that the scenario is unlikely, Balchunas admits that a last-minute denial isn't completely out of the cards, and that's why he and Seifert don't increase their chances of approval to anything above 90%.
RELATED: First Bitcoin ETF Trades $1.5B As GBTC ‘Discount' Echoes $69K BTC Price
Gensler's opinion recently came into focus in a 2019 video in which Gensler described the SEC's position on spot ETF products as “incoherent.”
Meanwhile, the SEC Bitcoin has a long and storied history of banning ETF applications dating back to 2017.
This legacy has been carried on by Gensler since his appointment as head of the SEC in 2021. Since then, Gensler has delayed and recently pushed back on Bitcoin ETF applications, citing investor protection concerns.
In June 2022, the Gensler-led SEC was sued by crypto asset manager Grayscale for rejecting its bid to convert a Bitcoin trust into a spot ETF. . The SEC did not appeal the decision.
To date, the SEC has only approved ETF applications for Bitcoin and Ether (ETH) futures, saying that spot products do not have adequate safeguards to protect investors from market manipulation.
Magazine: Beyond Crypto – Zero-Knowledge Proofs From Voting to Finance
