According to experts, Bitcoin Exchange-Traded Funds (Bitcoin ETFs) have a 95% chance of being approved. This optimistic prediction comes amidst warnings from the U.S. Securities and Exchange Commission (SEC) about the fear of missing out (FOMO) on cryptocurrency investments.
Lori Schock, who heads the Office of Investor Education and Advocacy at the SEC, has cautioned investors about the potential pitfalls of succumbing to the Fear of Missing Out (FOMO), which could precipitate hasty investment decisions, particularly in the realm of cryptocurrencies.
#SECInvestingResolution 5: Say “NO GO to FOMO” (fear of missing out). Just because others might buy a particular investment, doesn’t mean it’s the right opportunity for you. Learn more about finding out what’s right for you and your investing goals: https://t.co/fixDWoNFrF pic.twitter.com/SGf1z6xmhL
— SEC Investor Ed (@SEC_Investor_Ed) January 6, 2024
She underscored the inherent risks associated with cryptocurrencies, Initial Coin Offerings (ICOs), meme tokens, and Non-Fungible Tokens (NFTs), despite their current popularity. She noted that the crypto community is currently being driven by FOMO, regarding the impending approval of a spot Bitcoin ETF.
Bloomberg Analysts See 95% Chance of Bitcoin ETFs Approval
Bloomberg’s top Bitcoin ETF analysts, Eric Balchunas, and James Seyffart, have pointed out a significant reduction in the probability of rejection, which is now believed to be just 5%. This positive outlook is based on the SEC’s past decisions and the wider regulatory landscape.
Well said although I probably go with 5% at this point. But you gotta leave a little window open for these things.
— Eric Balchunas (@EricBalchunas) January 6, 2024
Balchunas’s remarks convey a sense of cautious optimism, recognizing a small degree of uncertainty. This guarded hopefulness is echoed by many in the sector, considering the SEC’s history of rejecting similar proposals. However, the prevailing market mood is uplifted by several elements, including Grayscale Investments’ previous legal victory against the SEC after their Bitcoin Trust’s conversion into a spot Bitcoin ETF was denied.
The court’s ruling, which deemed the SEC’s rejection as “arbitrary and capricious,” has established a precedent that could shape the SEC’s present decision-making approach. As the deadline draws near, key entities in the investment sphere are tactically aligning themselves. BlackRock is hopeful about the approval of its spot Bitcoin ETF application. This hopeful sentiment is echoed by Matthew Sigel from VanEck, who highlights BlackRock’s preparedness for the iShares Bitcoin Trust.
