The United States Securities and Exchange Commission (SEC) is approaching a critical decision phase on the approval of a physically backed Bitcoin exchange-traded fund (ETF), causing unease within the cryptocurrency community.
Leading analyst Nate Geraci predicts that if the SEC does not approve the ETF, it could lead to a significant market pullback, potentially becoming one of the largest retractions in cryptocurrency history.
According to the analyst, the probability of the SEC approving such a product is nearly 100%. The decision expected next month could be a turning point for the integration of cryptocurrencies into the traditional finance sector. The cryptocurrency market has recently experienced a significant increase, with the price of Bitcoin reaching the $45,000 level for the first time since 2022.
This rise was partly due to optimism that the ETF applications by companies such as Cathie Wood’s ARK Investment and 21Shares would be approved by the SEC.
The approval of the ETF could be a substantial boost for the cryptocurrency sector, which is still recovering from the 2022 collapse of the FTX exchange. Financial giants such as BlackRock, Invesco, and Fidelity have entered this space. Bloomberg Intelligence predicts that the spot Bitcoin ETF market could become a $100 billion behemoth. The potential institutionalization of Bitcoin is an intriguing narrative that reflects the interest sparked by the adoption of gold ETFs in the early 2000s.