The Bitcoin Price Reaches New Highs, But Fails to Close Above $38,000
Yesterday, the price of Bitcoin rose to $38,475, reaching a new high for the year. However, it was unable to close the day above the crucial $38,000 mark as bears pushed the price down before the end of the day.
BlackRock Engages in Discussions with SEC Over Spot Bitcoin ETF Structure
In an important development, BlackRock, the world’s largest asset manager, has been actively discussing the structure of its spot ETF with the US Securities and Exchange Commission (SEC). The company presented a revised model to the SEC’s Trading & Markets division, which includes changes in the process of acquiring Bitcoin from Coinbase and pre-paying in cash to a US registered broker dealer.
Potential Approval of Revised Model
If approved by the SEC, BlackRock’s revised model could lead to the introduction of the first US-based spot Bitcoin ETF. This would allow investors direct exposure to Bitcoin instead of relying on derivative instruments. While there is uncertainty regarding the SEC’s stance on spot Bitcoin exposure through an ETF, Bloomberg’s ETF analysts still give a 90% chance of approval by January 10.
Hot Take: Potential Milestone for Crypto Investors
If approved, BlackRock’s spot Bitcoin ETF could be a significant milestone for crypto investors. It would provide easier access to Bitcoin and potentially lower transaction costs while reducing risks associated with market manipulation. This development could pave the way for further adoption and acceptance of cryptocurrencies in traditional financial markets.
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