Spot Bitcoin ETF Approval Likelihood Increases
The likelihood of a spot Bitcoin ETF approval is increasing, with Bitcoin’s price recently reaching a 19-month peak of $38,800. The U.S. Securities and Exchange Commission (SEC) is expected to decide on the approval of a Spot Bitcoin Exchange-Traded Fund (ETF) between January 5th and 10th.
SEC’s Approval Window
A Spot Bitcoin ETF has been a long-discussed topic after BlackRock first filed for it. The approval of such a fund would allow investors to gain exposure to Bitcoin without directly purchasing and storing it, potentially attracting a wide range of investors and pushing the total crypto market cap by billions of dollars. Bloomberg’s James Seyffart has verified the expected timeframe for the decision.
The ETF Race Becomes Crowded
Despite increasing hopes for spot Bitcoin ETF approval, some firms are abstaining from the competition due to concerns about the saturated market, high regulatory and marketing expenses, and doubts about sufficient demand. However, the launch of a Bitcoin ETF is anticipated to attract up to $3 billion from investors in the initial trading days and potentially billions more in subsequent periods.
SEC Actively Moves Towards Approval
SEC is making active moves ahead of approving a spot Bitcoin ETF by meeting with Grayscale and BlackRock to discuss their applications. The SEC’s primary concern is the direct handling of Bitcoin by U.S. broker-dealers, which has led to the proposal of a “Cash” model as an alternative that complicates fund operations for BlackRock.
Hot Take
With the possibility of a spot Bitcoin ETF approval increasing, the crypto market anticipates significant gains if the ETF is approved, potentially propelling Bitcoin towards a projected $100,000 price target by the end of 2024.
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