You could still make money on the way down and then the way back up. And you’d probably move the market more than the ~3% that it was moved because the market consensus already gives a high probability to an approval this month.

I get your point that it may not rebound quite as much because the hack itself lowers the odds of approval, but imagine the optics of Gary Gensler saying “it's not true that we denied the ETFs” -- bitcoin boosters would read that as a signal that it will be approved.