Approval of Bitcoin Spot ETF Could Have Catastrophic Impact on Coin Price.

Janak9955

Despite the market's anticipation for the U.S. authorities to approve the first Bitcoin spot ETF, prominent Bitcoin skeptic and advocate for embracing gold, Peter Schiff, warns Bitcoin enthusiasts to be cautious not to hold too high expectations. Peter Schiff posted on the social media platform X, stating that the approval of a Bitcoin spot ETF could have a catastrophic impact on the Bitcoin price. He mentioned that the prospects of the U.S. launching a Bitcoin spot ETF have supported the price of Bitcoin and speculative demand for years. This means that even if the expected institutional investment demand does not materialize, and the ETF gets approved for listing, the price of Bitcoin could collapse. "Beware the impact!" Peter Schiff has long been skeptical about Bitcoin and has consistently predicted its demise over the years, but the performance of Bitcoin in each cycle has proven him wrong. His tweet received numerous comments from Bitcoin supporters, reminding him that, just like a gold ETF did not diminish the demand for physical gold, the introduction of a Bitcoin spot ETF would only add momentum to the Bitcoin market. However, Matrixport, an advisor collecting a considerable amount of data, also warns that Bitcoin supporters may have to wait longer to see the first Bitcoin spot ETF listed in the U.S. The company predicts that the U.S. Securities and Exchange Commission (SEC) may reject all Bitcoin spot ETF applications on the final deadline of January 10. Matrixport's latest prediction is in stark contrast to previous forecasts by many ETF analysts, some of whom expected a 90% chance of success for these applications before the final deadline on January 10. However, Matrixport states that despite frequent meetings between ETF applicants and SEC staff, "none of the applications have met the key requirements necessary to obtain SEC approval." Matrixport expects that no Bitcoin spot ETF will be approved for listing before the second quarter of 2024. The company's analysis points out that in the SEC's five-member voting committee, including SEC Chairman Gary Gensler, Democrats hold a majority, making it unlikely for the approval of a Bitcoin spot ETF. Many reports cite anonymous sources predicting that the first Bitcoin spot ETF would be approved by January 2, but this did not happen. As the final deadline for the SEC's decision on January 10 approaches, the market's optimism is turning into skepticism, evidenced by the softening stock prices of cryptocurrency mining companies and selling pressure in several U.S. stocks related to Bitcoin. In addition, Bitcoin experienced a 9% intraday drop on January 3. Bloomberg ETF analyst Eric Balchunas, who previously had a 99% confidence that a Bitcoin spot ETF would be approved in the first quarter of 2024, now believes there is still a "slight" chance that the SEC might reject the application for a Bitcoin spot ETF.

Ritu13

This impact is inevitable.

Yamini003

Various impacts have indeed arrived.