In a rather stunning turn of events for the asset, the Bitcoin (BTC) price has fallen amid speculation of a potential ETF rejection. The asset fell as much as 10% over the last 24 hours alone following Matrixport analyst Markus Thielen’s anticipation of overarching denials of the investment product by the US Securities and Exchange Commission (SEC).
Theilen’s report states that all Spot Bitcoin ETF applicants will fall short of “a critical requirement that must be met before the SEC can approve them.” Conversely, spot Bitcoin ETF applicants Galaxy and Invesco released a video commemorating Bitcoin’s birthday after the news was released.
Also Read: Bitcoin Breaks $45,000: Eyes on $50,000 Before ETF Decision
Bitcoin Price Drops As ETF Rejection Speculation Arises
Over the last few months, the digital asset sector has been hyper-focused on the potential approval of a Spot Bitcoin ETF. Moreover, as more than a dozen applications have been filed, optimism has abounded. The prevailing expectation is for an approval to be issued within the next week.
However, that does not appear to be as certain as it was a week ago. Indeed, the asset started the year above $45,00 for the first time since 2022. Now, Bitcoin has seen its price fall amid speculation of an ETF rejection. Specifically, Matrixport’s Markus Thelien’s most recent report has highlighted the potential for denials across the board. Especially considering the SEC’s leadership and its history,
Also Read: Coinbase Says it Has Extensively Prepared for Bitcoin ETF Approval
“SEC Chair Gary Gensler is not embracing crypto in the US, and it might even be a very long shot to expect that he would vote to approve bitcoin spot ETFs,” Theilen stated. “This might be fulfilled by Q2 2024, but we expect the SEC to reject all proposals in January.”
Theilens’ perspective seems contrary to the wider market opinion. Yet, it has undoubtedly impacted the asset price. Specifically, it has fallen as much as 10% over the last 24 hours. Moreover, the entire digital asset sector has seen prices fall across the board.
Currently, the statements are all speculative, with no official decision set to be made until the end of this week. Subsequently, ETF applicants Galaxy and Invesco released a video celebrating Bitcoin’s birthday. The video was released after the news arose and speaks on the asset’s 15th anniversary.