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Are Bitcoin ETFs headed for one epic Gensler ‘rugpull?’ Analysts weigh in

  • There’s speculation that Gary Gensler, the chairman of the United States Securities and Exchange Commission (SEC), may deny all spot Bitcoin exchange-traded fund (ETF) applications in a “semi-comedic rug-pull” move.
  • In response to this speculation, Bloomberg ETF analysts James Seyffart and Eric Balchunas mentioned that while the scenario is unlikely, it has lingered in their minds.
  • Denying the spot Bitcoin ETF applications could potentially trigger numerous lawsuits.
  • Although an approval is not entirely off the table, Seyffart and Balchunas are not raising the odds to anything above 90%.
  • Gensler’s previous remarks on spot Bitcoin ETFs have been brought into the spotlight, with a video from 2019 where he described the SEC’s position on spot ETF products as “inconsistent.”
  • The SEC has a history of rejecting spot Bitcoin ETF applications, and Gensler has continued this trend since becoming head of the SEC in 2021.
  • Grayscale, a crypto asset manager, sued the Gensler-led SEC in 2022 for rejecting its bid to convert its existing Bitcoin trust into a spot ETF. The court ruled in favor of Grayscale, stating that the SEC’s rejection was “arbitrary and capricious.”
  • To date, the SEC has only approved ETF applications for Bitcoin and Ether futures products, citing concerns about investor protections.

There’s a slim chance the United States Securities and Exchange chief Gary Gensler could pull the plug on spot Bitcoin (BTC) exchange-traded funds in one “amazingly sadistic” move, according to Bloomberg ETF analysts. In an Oct. 31 tweet directed at senior Bloomberg ETF analysts James Seyffart and Eric Balchunas, ETF commentator Dave Nadig posed whether Gensler may be allowing for spot Bitcoin ETF applications to pile up just to deny them all at once in a “semi-comedic rug-pull.” “I’m sure it will be much more boring than this — but sometimes it does feel like this is all a setup for a giant Gensler semi-comedic rug-pull,” said Nadig. […]

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