Bitcoin Surges Past $45,000 in 2024
Bitcoin has started 2024 on a bullish note, reaching over $45,000 for the first time since April 2022, showing a 6% increase in value. The surge is attributed to growing anticipation around the potential approval of spot Bitcoin Exchange-Traded Funds (ETFs) by the U.S. Securities and Exchange Commission (SEC).
SEC Bitcoin ETF Review Nears Decision
The most recent update on the spot Bitcoin ETF revolves around the ongoing review of the S-1 forms submitted by various entities aiming for the ETF before the December 29, 2023 deadline. The US Securities and Exchange Commission (SEC) is still examining the changes made to these forms, setting the stage for a potential approval.
This review process is crucial, signaling a step closer toward potential approval of the first-ever spot Bitcoin ETF in the United States. Notable contenders in this race include major entities like BlackRock, Invesco, Valkyrie, and others, all vying for the approval of a Bitcoin ETF.
Industry Expectations and Outlook
Despite the initial optimism, it seems less probable for the Bitcoin ETF to secure approval before January 6, 2024. However, this delay hasn’t hindered Bitcoin’s momentum, as it initiated the year with an impressive nearly 5% price surge within 24 hours.
Analysts anticipate a Bitcoin ETF approval could attract substantial investments, allowing investors to access Bitcoin without direct ownership. However, doubts persist about a significant immediate price surge due to recent struggles in the crypto space, including regulatory challenges and corporate failures, which dampened enthusiasm. VanEck’s Director of Digital Assets Gabor Gurbacs, foresees an initial inflow of a few hundred million dollars into the ETF, with a stronger long-term impact upon its launch.
Hot Take: Bitcoin ETF Anticipation Faces Regulatory and Market Challenges
As anticipation for the approval of a Bitcoin ETF grows, the market feels the impact of regulatory uncertainty. While a potential approval could attract significant investments, doubts persist regarding immediate price surges due to ongoing struggles in the crypto space. Overall, there is a sense of caution surrounding the potential approval of a Bitcoin ETF, with industry experts closely monitoring the situation for any future developments.
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