Are Bitcoin ETFs headed for one epic Gensler ‘rugpull?’ Analysts weigh in
Are Bitcoin ETFs headed for one epic Gensler ‘rugpull?’ Analysts weigh in
Admin 31 Oct, 2023

While unlikely, Bloomberg’s ETF analysts conceded there’s always a possibility that SEC Chair Gary Gensler could be waiting until the last moment to deny the flurry of pending spot Bitcoin ETF applications.

There’s a slim chance United States Securities and Exchange Commission Chair Gary Gensler could pull the plug on spot Bitcoin

 exchange-traded funds (ETF) 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.

Responding to the comment, Seyffart admitted that the thought of such a scenario has “lingered” in the back of his mind for weeks, if not months. “Would be absolutely epic on his part though,” he added.

Balchunas also piped in, describing a potential rug pull as “amazingly sadistic” and noting that it would probably “trigger [a] wave of lawsuits” in response.

However, while both analysts saw the scenario as quite unlikely, Balchunas conceded that a last-minute denial wasn’t entirely off the cards — part of the reason why he and Seyffart were hesitant to raise the odds of an approval to anything above 90%.