SEC Decision on Bitcoin ETFs Expected After January 10
Analysts in the options trading space have identified January 10 as the likely timeline for the US Securities and Exchange Commission (SEC) to make a decision on spot Bitcoin exchange-traded funds (ETFs). There is speculation that all applications may be rejected, leading to a bearish sentiment in the market.
Market Speculation Surrounding Bitcoin ETFs
Greekslive, a prominent financial analyst, has suggested that the SEC’s decision on spot Bitcoin ETFs will not be announced before January 7. This prediction is based on stock price movements of crypto mining operations and digital asset-related companies in the US.
The options market data indicates that institutional investors are not very bullish on the ETF market, as reflected by active put buying and cheaper current month puts.
Greekslive
Possible Delay or Rejection of Bitcoin ETFs
Despite recent optimism fueled by meetings and updated filings, some experts believe that the SEC may delay its decision on spot Bitcoin ETFs beyond January. Matrixport, a leading crypto platform, has even suggested that all bids for a fund investing in Bitcoin at spot prices could be rejected.
Potential Litigation Against the SEC
If the SEC rejects all spot Bitcoin ETF applications, legal experts predict that there could be litigation against the regulatory body. This is due to a court ruling during the Grayscale case, where the SEC was deemed “arbitrary & capricious.” The outcome of such litigation remains uncertain.
Market Reaction to Matrixport’s Report
Following Matrixport’s report, Bitcoin experienced a significant price drop of 7%, falling below $43,000. This triggered over half a billion in liquidations across the crypto market within four hours. Matrixport expects Bitcoin to return towards $36,000 but predicts a surge to at least $50,000 by February and an all-time high above $125,000 by the end of the year.
Hot Take: Bitcoin ETF Decision Looms
The crypto market eagerly awaits the SEC’s decision on spot Bitcoin ETFs. While there is speculation of a potential delay or rejection, the outcome remains uncertain. Investors are closely monitoring options market data and stock price movements to gauge institutional sentiment. The recent drop in Bitcoin’s price following Matrixport’s report highlights the market’s sensitivity to regulatory news. Regardless of the decision, it is clear that Bitcoin’s volatility will continue to shape its trajectory in 2024.
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