Spot Bitcoin ETF Could Be Approved Soon
The U.S. Securities and Exchange Commission (SEC) held a meeting with top exchanges to discuss the approval of spot Bitcoin ETF applications. According to sources, the SEC may start notifying issuers of their approval by this Friday, January 5.
Optimism Surrounds Bitcoin ETF Decision
As the deadline of January 10 approaches, analysts and stakeholders in the ETF space express confidence in a positive decision from the SEC. The SEC spokesperson stated that if a registration statement is declared effective, it will be reflected on EDGAR and published in the Federal Register.
The SEC has been engaging with exchanges to finalize their filings for Bitcoin ETF applications. However, there is still uncertainty as the SEC retains the authority to reject the applications. A recent report suggests an expectation of rejection due to factors like the Democratic majority within the SEC and Chairman Gary Gensler’s cautious stance on cryptocurrencies.
BTC Price Faces Resistance
The price of Bitcoin has been hovering around $43,000 and struggling to break past its critical resistance at $44,000. ATM option implied volatility has decreased significantly, indicating a lack of bullish sentiment among institutional investors.
As a result, put options for the current month have become more affordable, leading to increased activity in block trades featuring active put buying. The market awaits further clarity on the fate of the Bitcoin ETF.
Hot Take: Uncertainty Lingers as Bitcoin ETF Decision Approaches
The upcoming decision on spot Bitcoin ETFs by the SEC has generated both optimism and caution among market participants. While there is hope for approval, concerns remain due to potential rejection based on various factors including political dynamics and regulatory hesitancy towards cryptocurrencies.
The recent decline in the Bitcoin price following a report suggesting rejection reflects the market’s sensitivity to regulatory decisions. As the deadline approaches, investors and traders eagerly await the SEC’s announcement, which could significantly impact the future of Bitcoin and the broader cryptocurrency market.
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