I wouldn't be surprised if people irrationally freak out about it. I could see the price dropping further once more people hear this news. Though realistically, CXBTF was just made available on US markets about a month ago, and its all-time US trading volume looks to be only something like $5 million, so it's not as if a major player in the market was just removed.

According to some apparent SEC quotes on CoinDesk, it looks like the SEC is annoyed by some language in CXBTF's marketing material, though I can't actually find the source of those quotes.

IMO about $1-2k of the price is built on top of people hoping for an ETF (which would probably quickly put the price well above $10k), so any news that hints for or against quicker ETF approval is likely to have major effects.