Top Analyst Says Potential Spot Bitcoin ETF Approval Could Happen between January 5 and 10, 2024
The Bitcoin (BTC) bullish narrative that began in October is expected to continue in the coming weeks after the flagship crypto asset opened December on a high note. During the early New York trading session on Friday, Bitcoin price reached a new yearly high of around $38.8k, thus rejuvenating the $40k narrative before the end of the year. Moreover, Bitcoin price had been consolidating in an ascending triangle on the daily time frame, which signaled a possible bullish continuation.
With more than 10 fund managers seeking to offer spot Bitcoin exchange-traded funds (ETFs) in the United States amid heightened demand for crypto investment products by institutional investors, speculation on the approval data has significantly increased. According to Bloomberg analyst James Seyffart, the approval window for all the 12 spot BTC EFTs in the United States is likely to take place between January 5 and 10. Seyffart made the bold prediction during an online discussion with finance lawyer Scott Johnson, and commodities expert Thomas George.
Notably, the January 10 deadline for the spot Bitcoin ETF approval is based on the fact that the US SEC is expected to make the final decision on Ark 21Shares Bitcoin ETF. Additionally, the US SEC lost its case in a court of law against Grayscale Investments earlier this year. Since then, the SEC team has met with several spot Bitcoin ETF applicants which has resulted in notable changes and re-filings.
Earlier this week, Cathie Wood liquidated her stake in GBTC, which was viewed to be a preparation for an imminent approval of the spot ETF. Additionally, BlackRock Inc (NYSE: BLK) has intensified its Bitcoin acquisition through mining companies, and MicroStrategy Inc (NASDAQ: MSTR) recently purchased more than 16k more BTCs.
As a result, most experts believe the approval rate for spot Bitcoin ETF in the United States has significantly increased, especially with the heightened regulatory crackdown on legacy crypto exchanges like Binance, Kraken, and Bybit.
Price Action and Market Outlook
Bitcoin and the digital asset industry are expected to grow exponentially in the coming years fueled by the poor monetary policies made by most global central banks to print money haphazardly. According to our latest market data, Bitcoin price is currently retesting the resistance/support level around $38.4k after a strong breakout earlier today. However, crypto traders should be wary of possible pre-halving correction caused by the ‘sell the news’ narrative after the spot Bitcoin ETFs are approved in the United States. Moreover, the spot ETF issue in the United States has significantly been hyped in the past few months.
Key Takeaways
| 1. | The Bitcoin (BTC) price reaches a new yearly high of $38.8k, signaling a possible bullish continuation. |
| 2. | Speculation on the approval of spot Bitcoin ETFs in the United States has increased. |
| 3. | The approval window for spot BTC ETFs is expected to take place between January 5 and 10, 2024. |
| 4. | Experts believe that the approval rate for spot Bitcoin ETFs in the United States has significantly increased. |
| 5. | Bitcoin and the digital asset industry are expected to grow fueled by poor monetary policies made by global central banks. |
| 6. | Crypto traders should be cautious of a possible pre-halving correction after the approval of spot Bitcoin ETFs. |
Frequently Asked Questions
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What is a Bitcoin ETF?
A Bitcoin exchange-traded fund (ETF) is a type of investment fund that tracks the price of Bitcoin and allows investors to buy shares in the fund.
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Why is the approval of spot Bitcoin ETFs significant?
The approval of spot Bitcoin ETFs in the United States would provide institutional investors with an easier and regulated way to invest in Bitcoin, potentially increasing the adoption and liquidity of the cryptocurrency.
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What impact can the approval of spot Bitcoin ETFs have on the market?
The approval of spot Bitcoin ETFs is expected to contribute to the growth of Bitcoin and the digital asset industry, as it provides more accessibility and legitimacy to the cryptocurrency.
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Should crypto traders be cautious after the approval of spot Bitcoin ETFs?
Yes, crypto traders should be aware of possible market corrections, such as a pre-halving correction, that can occur due to the ‘sell the news’ narrative surrounding major events in the crypto market.
Conclusion
The potential approval of spot Bitcoin ETFs in the United States between January 5 and 10, 2024, has generated significant speculation and anticipation in the crypto market. The increasing number of fund managers seeking to offer spot BTC ETFs and the regulatory crackdown on legacy crypto exchanges contribute to the belief that the approval rate has significantly increased. However, crypto traders should remain cautious and be aware of possible market corrections after the approval, such as a pre-halving correction. The information presented in this article is for educational purposes only. Always conduct your own research before investing in cryptocurrency.
