Bitcoin is inching closer to $45,000. BTC was last traded at $44,104.29. This may be primarily due to speculation surrounding the SEC’s approval of Bitcoin ETF applications. Applications from the likes of BlackRock and Fidelity are expected to peak by January 10, 2024.
While the entire cryptocurrency industry waits for the long-awaited moment, one analyst has come forward and asked the commission not to approve the application.
Dennis Kelleher, CEO of Better Markets, a nonprofit venture firm, asked the SEC to reject all applications. Dennis justified this by saying that the SEC would indirectly approve any fraud and manipulation to protect its customers. He drafted an 11-page letter stating that it would cause enormous harm to inventors and their funds.
He was criticized for this remark. Bitcoin enthusiasts said a rejection would undermine all the hard work and energy the cryptocurrency industry has invested in getting ETF applications approved. It would also hurt SEC staff who invested in analyzing the applications.
Dennis isn’t the only one who says this. A few days ago, Matrixport released a report suggesting that the SEC may reject ETF applications. That’s because the application falls short of the requirements that must be met before the U.S. Securities and Exchange Commission can approve it. There’s no specific mention of a lack of requirements of any kind, but signals have been sent that a rejection could be on the horizon.
The effect triggered a crash in the cryptocurrency market. BTC fell below $42,000 and ETH fell below $2.3,000.
Leading analysts Matrix Port Report He said the application would eventually be approved. They said approval could occur by the second quarter of 2024.
Another reason why Matrixport rejected its application is because SEC Chairman Gensler has been opposing new cryptocurrency products for some time. Moreover, most of the committee members who vote to approve or deny are Democrats.
A Bitcoin ETF receiving SEC approval will pave the way for: XRP ETF. This is speculation awaiting official confirmation. Ripple supporters say that once the SEC approves the Bitcoin ETF application, it is only a matter of time before the community starts applying for the XRP ETF. Neither the management company nor the issuer is yet proactive on this aspect. So it still remains speculation.
If the application is rejected, the community will have to wait for the Bitcoin halving in Q2 and beyond. The latter reduces the token supply and increases the price.
The SEC did not respond to the claims from Better Markets founder Dennis Kelleher. In just 2-3 days, everyone will know what happens to their favorite token, BTC.