Jay Clayton Calls for Approval of Spot Bitcoin ETF
Former chairman of the US Securities and Exchange Commission (SEC), Jay Clayton, recently appeared on CNBC TV and expressed his support for the approval of a spot Bitcoin Exchange Traded Fund (ETF). Clayton initially admitted to being skeptical of the Bitcoin trading markets during his time as SEC chair. However, he acknowledged that the landscape has changed significantly, with increased retail participation and growing demand for access to Bitcoin. Clayton believes that credible financial institutions with fiduciary duties to their customers are now ready to offer a spot Bitcoin ETF. He suggested seeking public comment and moving forward with the approval process.
SEC Postpones Decision on Ark Invest’s Spot Bitcoin ETF
The SEC recently postponed its decision on Ark Invest’s spot Bitcoin ETF application and called for a period of public comment. This delay was expected, as many industry players anticipate the SEC to approve multiple spot Bitcoin ETFs simultaneously. The SEC seems to be buying time after receiving numerous spot Bitcoin ETF applications from major financial institutions like BlackRock, Vanguard, and Fidelity. While the market remains optimistic about the potential approval of these applications, it has entered a wait-and-see mode. Traders are closely monitoring the US regulatory backdrop and the Fed’s interest rate outlook.
Spot Bitcoin ETF Approval Expected to Trigger Market Rally
Research houses like Matrixport and Bernstein predict that the approval of spot Bitcoin ETFs will lead to a surge in the Bitcoin market. A spot Bitcoin ETF would attract institutional funds that have been waiting for an easily accessible crypto investment product. Additionally, the approval would give Bitcoin a marketing push, benefiting from leading global asset managers and increased distribution from retail brokers and financial advisors. Matrixport and Bernstein expect considerable marketing expenses to draw in retail and institutional capital. While Bitcoin currently faces the possibility of a short-term setback, the outlook for spot ETF approvals, Fed rate cuts, regulatory clarity, and the 2024 Bitcoin halving suggests that any dips in price would likely be viewed as buying opportunities.
Bitcoin Vulnerable to Short-Term Setback
Despite the optimism surrounding spot Bitcoin ETF approvals, Bitcoin is susceptible to a potential short-term setback due to technical selling. The cryptocurrency appears to be on the verge of breaking below its 2023 uptrend, which could trigger a drop towards short-term support levels. Profit-taking after this year’s strong rally might push prices below the 200-Day Moving Average and towards the June lows. However, many view any dips into the mid-$20,000s as attractive buying opportunities, considering the anticipated spot ETF approvals, future Fed rate cuts, regulatory clarity, and the upcoming Bitcoin halving in 2024.
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