Analyzing the Roadblocks: Why an ETF Approval by January 10th Seems Unlikely?

The post Analyzing the Roadblocks: Why an ETF Approval by January 10th Seems Unlikely? appeared first on Coinpedia Fintech News

Cryptocurrency prices soared today, riding a wave of positivity. Bitcoin and other top digital currencies surged due to excitement about the Bitcoin Spot ETF and optimistic statements from central banks. Bitcoin is getting closer to hitting $45,000 after reaching over $44,000 earlier this week.

Right now, Bitcoin’s price is $44,225.27, rising by 1.64% in the past day, even though its trading volume dropped by 15.99% to $23.80 billion. This jump in value shows how confident investors are in the market’s strength. In a favorable market, one analyst predicts bearishness in the coming month, possible ETF delays? Here’s everything you must know before jumping into the ETF pool. 

The latest X post from BareNakedCrypto has sent ripples across the cryptocurrency sphere, casting shadows of doubt on the anticipated approval of a Bitcoin-linked Exchange-Traded Fund (ETF). The tweet, while acknowledging the likelihood of an ETF approval eventually, lays out compelling reasons suggesting a possible delay on January 10th.

IS THE #ETF a TRAP?

While I do agree that the #ETF is going to get approved sooner or later

Reason why I don't think the #ETF will be approved as early as Jan 10th

1) Justin Sun running rampant(now hes not going to conferences in person, virtually,… pic.twitter.com/SNnAvVEBtC

— BareNakedCrypto , (@BearNakedCrypto) December 8, 2023

Analyst Raises Red Flag On ETF Approval on Jan 10

While the world is rooting for the ETF approvals and Bitcoin is also running high on the 18-month surge, things may take a change if ETFs are further delayed. In a series of pointed observations, he raises many red flags, spotlighting various concerns. 

Firstly, it points a finger at Justin Sun’s actions, pondering if his recent shift to virtual appearances from in-person conferences could influence the decision. Furthermore, it draws attention to the persistent USDT (Tether) hamas controversies, hinting at potential implications for ETF approval. Plus, he also highlights Blackrock’s ETF filing, underscoring apprehensions related to stablecoins USDC and USDT concerning Bitcoin, potentially hindering regulatory green lights.

Reports linking Tron’s (TRX) alleged usage by certain entities due to its handling of USDT add to the regulatory fuzziness. This, coupled with past ETF rejections due to concerns over stablecoins, paints a cloudy picture for the impending approval. 

Dark Secrets of SEC ETF Drama?

Also, there are doubts about sugar-coated predictions that are too positive and how they affect market trends since past optimistic predictions have led to different results. It looks like the SEC isn’t sure how to handle crypto assets, and since they don’t have any clear rules, it will be hard for them to approve ETFs.

The SEC is facing mounting pressure after a court ruled against its basis for rejecting an ETF bid by Grayscale last summer. Big players like BlackRock and Franklin Templeton have applied, sparking expectations of broadening crypto access for US retail investors. An SEC decision might surface as early as next month. 

Moreover, the analyst is optimistic that a new bill, hinting at possible governmental control over stablecoin flows, will spark questions about its influence on ETF approval.