The Bitcoin Price is Selling Off Amidst Spot Bitcoin ETF Approval Concerns
The Bitcoin (BTC) price is experiencing a downturn due to spreading fear, uncertainty, and doubt (FUD) in the market regarding the approval of spot Bitcoin Exchange Traded Funds (ETFs). BTC dropped by 3% from approximately $34,500 to around $33,500 after BlackRock’s iShares Bitcoin Trust ticker ($IBTC) was removed from the US Depository Trust & Clearing Corp.’s (DTCC) website list. Bloomberg’s senior ETF analyst, Eric Balchunas, commented that he wasn’t surprised by this move and speculated that it may be an indication that approval for spot Bitcoin ETFs is still some time away.
This removal of BlackRock’s spot Bitcoin ETF ticker from the DTCC’s website list may disappoint Bitcoin bulls who anticipated approval within days. Consequently, there is increased selling pressure in the Bitcoin market.
Are Spot Bitcoin (BTC) ETF Approvals at Risk?
However, the removal of the ticker from the DTCC’s list is merely a technicality and does not necessarily indicate a delay in approving a spot Bitcoin ETF. Market participants are likely to remain confident in imminent approvals due to two factors: 1) the SEC’s recent decision to drop its lawsuit against Grayscale over their spot Bitcoin ETF application rejection, and 2) adjustments made by major Wall Street institutions to their own spot Bitcoin ETF applications, suggesting constructive collaboration with the SEC for approval.
Several analysts anticipate that multiple spot Bitcoin ETFs will be approved within a few months, with JP Morgan even predicting approval before January 10th. Matrixport still expects the Bitcoin price to reach the $40,000 range. Therefore, dips like the current one in the Bitcoin market are viewed as buying opportunities, and the near-term bullish trend is expected to continue.
Hot Take: Spot Bitcoin ETF Approval Concerns Weigh on Bitcoin Price
The removal of BlackRock’s iShares Bitcoin Trust ticker from the DTCC’s website list has sparked worries about delayed approvals for spot Bitcoin ETFs. This uncertainty has caused a 3% drop in the Bitcoin price, prompting concerns among investors. However, it is important to note that this technicality does not necessarily indicate a setback in approving spot Bitcoin ETFs. Recent developments, such as the SEC’s decision to back down in its lawsuit against Grayscale and adjustments made by major Wall Street institutions to their own ETF applications, suggest that approval may still be imminent. Despite the current dip, analysts remain optimistic about the long-term bullish trend of Bitcoin.
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