A Look at the Approval of Bitcoin ETFs
After the official approval of exchange traded funds (ETFs) to track bitcoin, the crypto world is buzzing with excitement. The U.S. Securities and Exchange Commission has given the green light to 11 applications from major players like BlackRock, Ark Investments/21Shares, Fidelity, and Invesco. Most of these ETFs are expected to start trading on Thursday.
Estimates suggest that first-year inflows could range from $5 billion to $100 billion. While these ETFs provide wider access to bitcoin, it remains to be seen if the volatile cryptocurrency will be accepted by a larger investor base.
Bitcoin’s Reaction and Market Expectations
Bitcoin remained relatively stable in Asian hours, currently standing at $46,337 after the approval. The cryptocurrency had already surged 70% since mid-October in anticipation of this regulatory decision. Investors are now awaiting the U.S. inflation report, which could impact the Federal Reserve’s stance on rate cuts.
Traders are still pricing in 140 basis points of rate cuts in 2024, compared to the Fed’s projection of 75 bps of cuts. The upcoming report will provide insights into whether inflation is aligning with the Fed’s target of 2%. Currency markets have been cautious, with the Japanese yen recovering against the dollar and standing at 145.36.
Nikkei’s Strong Performance and European Outlook
The Nikkei continues its impressive run as it surpassed 35,000 for the first time in nearly 34 years. As the best performing Asian bourse in 2023, it sets a positive tone for the year.
In Europe, futures indicate an optimistic market sentiment with minimal economic data scheduled for the region.
Key Developments on Thursday
Economic events to watch out for include the CPI data for Portugal, Netherlands, and the U.S.
Hot Take: Bitcoin ETFs Bring New Opportunities
The approval of bitcoin ETFs marks a significant milestone for the cryptocurrency world. It opens up new avenues for investors to participate in bitcoin’s growth and potentially attracts a wider investor base. While the exact inflow estimates vary, there is no doubt that this development has sparked enthusiasm in the market. As bitcoin continues to make waves, it remains to be seen how these ETFs will shape the future of crypto investments.
By
By
By
By
By
By