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Eric Balchunas: “There remains a small chance of refusal to launch spot Bitcoin ETFs”

Eric Balchunas, an ETF analyst at Bloomberg, has expressed his belief that there is a small chance that the US Securities and Exchange Commission (SEC) may refuse to launch spot Bitcoin ETFs. Balchunas estimates the failure rate to be around 10%, which could occur if the regulator requires more time to agree on operational conditions for cryptocurrency funds. The final decision on several applications for spot Bitcoin ETFs is expected to be announced between January 8th and January 10th.

However, Balchunas is optimistic, stating that if the SEC does not approve ETFs like this in the coming weeks, it would likely be due to the regulator needing more time, rather than a fundamental refusal. He puts the probability of the regulator approving the launch of corresponding funds at 90%.

“I would say that if we don’t see ETFs like this in the next couple of weeks, it’s a matter of the SEC needing more time, not a fundamental refusal. But still, with a 90% probability, the regulator will approve the launch of the corresponding funds,” noted Balchunas.

Balchunas also highlighted the extensive efforts put forth by the regulator and representatives of various companies to agree on launch conditions for cryptocurrency ETFs. This indicates that the SEC’s leadership is prepared for such funds, with only formalities remaining to be resolved.

As a reminder, participants in the “ETF race” have already finalized and submitted their applications for spot Bitcoin funds to the SEC and are now eagerly awaiting the regulator’s final decision.