SEC Decision Brings Spot Bitcoin ETF Approval Closer, says JPMorgan
JPMorgan released a research report stating that the recent decision by the US Securities and Exchange Commission (SEC) not to appeal a ruling against them in the Grayscale case brings the approval of spot Bitcoin ETFs in the US closer. According to JPM analysts, the first approvals are likely to come in before January 10th, which is the final deadline for the Ark 21Shares application. In August, three judges at the DC Circuit Court of Appeals ruled that the SEC’s decision to allow Bitcoin futures ETFs while denying Grayscale’s application for a spot Bitcoin ETF was “arbitrary and capricious.” The SEC’s decision not to appeal this ruling has raised hopes that the agency is shifting its focus towards approving spot Bitcoin ETFs.
Bitcoin Pumps on Spot ETF Approval Optimism
Bitcoin (BTC) is currently trading in the mid-$29,000s and is expected to see gains of over 8% this week due to optimism about potential upcoming spot ETF approvals. JPMorgan is not the only institution predicting near-term approvals. Galaxy Digital CEO Mike Novogratz expects approvals to come before the end of 2023, while Coinbase chief legal officer Paul Grewal believes that progress will be made shortly. Applications from major firms like BlackRock, Fidelity, WisdomTree, and Vanguard have sparked optimism as they have tweaked their filings this week. The market’s confidence in ETF approval has increased as a result.
How High Can Bitcoin Price Pump in 2024?
The recent spike in BTC price following a fake news report about BlackRock’s iShares spot Bitcoin ETF approval serves as a warning to bears about how the price could react when actual approvals occur. With rising optimism about spot Bitcoin ETF approvals, sellers have been hesitant to enter the market, causing the BTC price to slowly rise. Matrixport projects that the price could rise to between $42,000 and $56,000 upon news of spot ETF approvals, potentially resulting in gains of 40-90%. Additionally, historical data suggests that Bitcoin’s upside potential for 2024 is even greater due to previous halving events and the possibility of lower interest rates ahead.
Hot Take: Bitcoin’s Bullish Future
The recent developments surrounding spot Bitcoin ETF approvals and the upcoming halving event in April have increased market confidence and could kickstart a robust bull market. As macro investors view Bitcoin as a safe haven asset, its rally this week despite downside in the US stock market indicates further potential for growth. With factors like historical trends, potential lower interest rates, and increasing adoption as a safe haven asset, Bitcoin could see a strong rally in 2024. A projected 130% rally back to 2021’s record highs is a strong likelihood for next year.
Wyatt Newson emerges as a luminary seamlessly interweaving the roles of crypto analyst, dedicated researcher, and editorial virtuoso. Within the dynamic canvas of digital currencies, Wyatt’s insights resonate like vibrant brushstrokes, capturing the attention of curious minds across diverse landscapes. His ability to untangle intricate threads of crypto intricacies harmonizes effortlessly with his editorial mastery, transmuting complexity into a compelling narrative of comprehension. Guiding both seasoned navigators and curious newcomers, Wyatt’s insights serve as a compass for astute decision-making amidst the ever-shifting currents of cryptocurrencies. With the artistry of a linguistic craftsman, they skillfully craft narratives that enrich the evolving tableau of the crypto landscape.
