The overall consensus among crypto analysts right now is that the SEC will approve Bitcoin ETFs in January. However, one analyst at Matrixport predicts the rejection of all upcoming ETF proposals, which will undoubtedly affect crypto signals.
The primary reason for such a rejection would be the SEC’s lingering concerns about the crypto industry. The leader of the SEC still seems to desire stricter regulations on the industry before granting approval.
The SEC has been holding frequent meetings with the various proposal filers in the past few weeks. Some have taken this as a sign that the likelihood of the proposals passing is high, indicating that they are busy working out the proposal details. However, the Matrixport analyst believes that all the recent applications fall short of the requirements.
ETFs could offer a highly profitable perspective for the crypto industry in the US, which every crypto trader is looking forward to. However, the SEC’s concerns have more to do with regulation than the financial potential of crypto.
There is the possibility of the acceptance of the proposals further down the line, in the first half of 2024. However, they doubt that January will be the time for these proposals to pass.
Many still view the crypto industry as rife with fraudsters and scammers. Trust in the industry is lacking right now. Regulators have implemented laws for the industry to follow, including security and anti-money laundering laws, but it appears that many are still not in compliance.
The industry has been waiting for years for such ETFs to gain approval. It would signal a significant level of acceptance for the industry, boosting crypto signals. However, if the ETFs do not receive approval, it could have significant effects on the industry. We could see mass liquidations of bitcoin futures, draining substantial amounts of funds from the industry.
Subsequently, Bitcoin’s price could drop rapidly, potentially by as much as 20%. The crypto day trading market might abandon the crypto leader. This could result in the value of the crypto dropping to $38,000 or even as low as $36,000. However, the analyst also expects the coin to rebound by the end of the year, rising to around $42,000.
