New Market Entrant in Bitcoin Spot ETF Space
The competition for Bitcoin Spot ETFs heats up with the inclusion of new players, bringing the total number of issuers to 13. The proposed Pando Asset Spot Bitcoin Trust will use Coinbase as the custodian and trade on the Cboe BZX Exchange, showcasing Pando’s strategy of entering the U.S. market as a foreign company.
BlackRock’s Modified Strategy
Bloomberg ETF analyst Eric Balchunas sheds light on BlackRock’s meeting with the SEC’s Trading and Markets division, where they presented a revised in-kind model design. The ongoing debate with regulators over cash creation versus in-kind delivery continues, shaping the landscape for potential Bitcoin Spot ETF approvals. The anticipation for Bitcoin Spot ETFs has spurred a market rally, impacting both spot and futures markets.
Market Reacts Proactively
The market responds to the Bitcoin Spot ETF anticipation with a surge in both spot and futures markets, indicating an overall excitement that contributed to a rally in Bitcoin prices and $8.94 million in short liquidations overnight. ProShares Bitcoin Strategy ETF (BITO) assets under management reached a record high of $1.47 billion. Grayscale Bitcoin Trust’s GBTC has also proposed two key amendments to prepare for the launch of an ETF tracking spot Bitcoin.
BTC Aims $40,000
Crypto analyst Crypto Tony provides technical insights into Bitcoin’s price chart, projecting a potential rally to $40,000. According to Tony, sustained demand from market participants could push BTC prices even higher after breaking through the $40,000 level. However, a correction is anticipated, with the price potentially dropping to $36,000 following the initial surge.
Hot Take: Bitcoin Spot ETF Developments Impact Market
The prospect of Bitcoin Spot ETF approvals in January has sparked a recovery rally. As new players enter the market and BlackRock presents a modified model, we are witnessing a proactive market response with record-high assets under management for BITO. Additionally, technical analysis suggests the potential for BTC to rally to $40,000 with anticipated price corrections along the way.
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