There’s a slim probability United States Securities and Exchange Commission Chair Gary Gensler might pull the plug on spot Bitcoin (BTC) exchange-traded funds (ETF) in one “amazingly sadistic” transfer, in line with Bloomberg ETF analysts.
In an Oct. 31 tweet directed at senior Bloomberg ETF analysts James Seyffart and Eric Balchunas, ETF commentator Dave Nadig posed whether or not Gensler could also be permitting for spot Bitcoin ETF functions to pile up simply to disclaim them abruptly in a “semi-comedic rug-pull.”
“I’m sure it will be much more boring than this — but sometimes it does feel like this is all a setup for a giant Gensler semi-comedic rug-pull,” mentioned Nadig.
I’m certain it is going to be rather more boring than this — however generally it does really feel like that is all a setup for an enormous Gensler semi-comedic rug-pull.
— Dave Nadig (@DaveNadig) October 30, 2023
Responding to the remark, Seyffart admitted that the considered such a situation has “lingered” in the again of his thoughts for weeks, if not months. “Would be absolutely epic on his part though,” he added.
Balchunas additionally piped in, describing a possible rug pull as “amazingly sadistic” and noting that it will in all probability “trigger [a] wave of lawsuits” in response.
However, whereas each analysts noticed the situation as fairly unlikely, Balchunas conceded {that a} last-minute denial wasn’t fully off the playing cards — a part of the explanation why he and Seyffart have been hesitant to boost the percentages of an approval to something above 90%.
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Gensler’s personal ideas on a spot Bitcoin ETF have not too long ago made their approach into the highlight, with a video from 2019 exhibiting Gensler describing the SEC’s position on spot ETF products on the time as “inconsistent.”
The SEC has a storied historical past of denying spot Bitcoin ETF applications, a pattern that first started in 2017.
This legacy has been carried on by Gensler since he was appointed head of the SEC in 2021. Since then, Gensler’s SEC has both delayed, denied or pushed back all functions for a spot Bitcoin ETF product, citing issues with investor protections.
In June 2022, the Gensler-led SEC was sued by crypto asset supervisor Grayscale for rejecting its bid to transform its current Bitcoin belief right into a spot ETF, with a court ruling that the SEC was “arbitrary and capricious” to reject the appliance. The SEC did not appeal the choice.
To date, the SEC has solely authorized ETF functions for Bitcoin and Ether (ETH) futures merchandise, because it claims that spot merchandise should not have adequate safeguards to guard buyers from market manipulation.
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