Bitcoin Market Loses $100 Billion as BTC Crashes
In the last 24 hours, around $100 billion has been withdrawn from the cryptocurrency market due to a sharp decline in the price of Bitcoin on January 3. BTC dropped by 8% and hit a low of approximately $42,000 before recovering to reach $43,000 again on January 4.
Reports and rumors suggest that the US Securities and Exchange Commission (SEC) will approve a group of spot Bitcoin exchange-traded funds (ETFs), which has caused concern among investors. However, industry experts and analysts believe that the ETFs will still be approved next week.
Bitcoin ETF Approvals Remain Likely
Crypto YouTuber Lark Davis stated that the recent Bitcoin dump was triggered by a rumor started by Matrixport. Despite this, he expressed confidence that the SEC would ultimately approve the ETFs. The deadline for the Ark 21Shares spot BTC ETF application is January 10, and it is expected that the SEC will approve multiple applications to prevent any first-mover advantage.
Gabor Gurbacs, a strategist at Tether and VanEck, criticized those who base their market actions on Bitcoin ETF predictions. Bloomberg senior ETF analyst Eric Balchunas also believes that signs point to SEC approvals based on continued meetings and filing amendments.
Potential Approval of Spot Bitcoin ETFs
Fox Business reported that sources close to the SEC proceedings suggest that issuers could be notified of approval as early as Friday, with trading starting next week. Crypto lawyer Jake Chervinsky expressed confidence that spot Bitcoin ETFs would finally be approved in the USA after a decade-long wait.
Grayscale Discusses Bitcoin ETF Role With Major Banks
Crypto asset manager Grayscale is reportedly in talks with big banks, including JPMorgan and Goldman Sachs, regarding their potential involvement in the proposed Bitcoin ETF. Both banks are being considered as authorized participants who can create and redeem shares of the fund.
Hot Take: Bitcoin ETF Approvals Expected Despite Market Volatility
Despite the recent market volatility and rumors surrounding Bitcoin ETFs, it is still highly likely that the SEC will approve spot Bitcoin ETFs. Industry experts and analysts continue to express confidence in the approval process, pointing to ongoing meetings and filing amendments as positive signs. The potential involvement of major banks like JPMorgan and Goldman Sachs in the proposed Bitcoin ETF further indicates growing acceptance and interest in cryptocurrency investments. As we approach the final deadline for ETF applications, investors eagerly await a positive outcome that could have a significant impact on the crypto market.
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