Bitcoin Price Surges as ETF Approval Confidence Grows
The Bitcoin (BTC) price soared to $44,000 amid increasing confidence in the approval of spot Bitcoin ETFs before the January 10, 2024 deadline. While ETF filers continue to hold discussions with the U.S. Securities and Exchange Commission (SEC), Matrixport Research predicts that BTC could reach $50,000 if the SEC approves ETFs. The firm currently sees a 95% chance of approval in January 2024. Blackrock, an investment manager, has been meeting with the SEC multiple times, potentially in preparation for spot ETF approval.
Grayscale and Blackrock Meet with SEC
In a recent development, Grayscale held a meeting with SEC officials on December 19, 2023, to discuss the conversion of the Grayscale Bitcoin Trust into a Bitcoin ETF. The meeting focused on the proposed rule change to list and trade shares of the trust. CoinGape previously reported on Blackrock’s meetings with the agency regarding its iShares Bitcoin Trust.
Potential Conditions for Approval
Fox Business journalist Charles Gasparino suggests that aspiring firms are confident in Bitcoin ETF approval after January 8, 2024. However, approval may be subject to conditions aimed at preventing money laundering violations. The SEC is concerned about ETFs being used for illicit purposes such as money laundering.
Decision Window for Approval
Analysts believe that the SEC has a narrow window between January 8 and 10 to make decisions on approving ETF proposals. It remains to be seen if the agency will approve filings from select companies first and then follow up with others. Additionally, all ETF filers may be given the same launch date for their respective products.
Hot Take: Bitcoin ETF Approval Could Boost BTC Price
The growing confidence in Bitcoin ETF approval is causing the BTC price to surge. If the SEC approves ETFs, Matrixport Research predicts that BTC could reach $50,000 in January 2024. This development could attract more institutional investors and further drive the cryptocurrency market. However, approval may come with conditions related to preventing money laundering. The SEC has a limited timeframe for decision making, and it remains to be seen how the approval process will unfold. Nevertheless, the anticipation of ETF approval is creating excitement and optimism among crypto enthusiasts.
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