Nasdaq Meets with SEC to Discuss Bitcoin Spot ETF
Yesterday, the Securities and Exchange Commission (SEC) held a confidential meeting with executives from Nasdaq, NYSE, and other exchanges to discuss the potential approval of a Bitcoin spot ETF. These meetings are a normal part of the SEC’s administrative process before approving a new financial instrument. While the details of the meeting remain unknown, it is believed that the approval of a Bitcoin spot ETF is imminent. The SEC typically does not hold these types of meetings if it intends to reject proposals from investment funds. Investors are eagerly awaiting the SEC’s decision on various ETF applications, with expectations that approval will be granted by January 10th for Ark and subsequently for other providers.
Matrixport’s Report on the ETF Issue
Crypto consulting company Matrixport recently published a report suggesting that the SEC will reject all requests for a Bitcoin spot ETF in January. According to Matrixport, SEC Chairman Gary Gensler is unlikely to vote in favor of approving Bitcoin spot ETFs due to his lack of support for cryptocurrencies. The report also highlights political issues within the SEC, as many Democrats are against cryptocurrencies and may hinder the approval process. However, it is important to note that these claims have no scientific basis and are solely personal thoughts from Matrixport representatives. It remains to be seen whether their predictions will come true.
The Impact on Bitcoin and Market Retracement
Following Matrixport’s report, Bitcoin experienced a significant downturn, losing 4.68% of its value in one day. However, it is unclear whether this drop can be attributed directly to the report or if it is part of a broader market retracement. On the same day, major indices such as S&P500 and Nasdaq also experienced retracements after months of bullish rallies. This crash could signify the beginning of a retracement phase unrelated to the ETF issue or a necessary correction in an overextended market. It is worth noting that derivative markets on Bitcoin had reached excessive levels of enthusiasm, and the crash served to bring financing rates back to regular levels.
Hot Take: Uncertainty Surrounding Bitcoin Spot ETF Approval
The meeting between the SEC and major exchanges regarding the approval of a Bitcoin spot ETF has generated excitement and speculation among crypto investors. While some believe that approval is imminent based on the SEC’s usual procedures, others are skeptical due to political factors and alleged non-compliance with SEC requirements. The recent downturn in Bitcoin’s price adds to the uncertainty surrounding the ETF approval. Ultimately, only time will tell whether the SEC will approve these requests, but it is clear that the decision will have a significant impact on the crypto market.
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