Senior ETF analyst Eric Balchunas has indicated that a minimum of three out of the five SEC commissioners support the endorsement of Bitcoin spot ETFs. Balchunas explained that the SEC staff, guided by Chairman Gensler, has collaborated with issuers for months, even during holidays. His remarks were in response to Markus Thielen of Matrixport, who published two opinion pieces simultaneously, one predicting approval and the other forecasting rejection. Mixed Signals Thielen asserted that he altered his stance to bearish, not for the sake of making accurate predictions, but due to well prepared arguments. Despite Thielen lacking concrete information on the matter, his rejection opinion piece gained attention when published by Coindesk with a seemingly factual title. Insiders, such as Balchunas, assert that approval is still imminent, with the SEC potentially announcing the decision following a meeting with various exchanges. The exact meeting time is unclear, but this marks the first instance where a reporter claims three commissioners are in favor. Given that two of these are Republicans, expected to support, and Gensler, appointed by Joe Biden, has indicated a court mandated approval, a decision favoring the ETFs seems imminent if three commissioners are indeed in favor. More Complications Matrixport attributes potential rejection to the cautious stance on crypto compliance adopted by Gensler, emphasizing his focus on regulatory standards and non-compliance within the crypto industry. Matrixport contends that Gensler choosing to focus on stringent compliance signals a probable disapproval, impacting widespread cryptocurrency investment potential. Additionally, Matrixport notes that most voting commissioners associated with the Democratic party, generally skeptical of cryptocurrencies, further complicate ETF approval. Furthermore, regulatory authorities lack compelling political reasons to endorse a spot ETF, casting doubt on swift approval. As a result of these recent developments, BTC experienced a sudden drop in price which also adversely affected all of the altcoins.
