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- The US SEC has a limited time to finally give its verdict on different spot Bitcoin ETF bids.
- Anticipation for approval is high, a sentiment helping to fuel the growth of the coin.
The cryptocurrency market is eagerly awaiting a momentous event in January 2024 as the United States Securities and Exchange Commission (SEC) inches closer to deciding on a series of spot Bitcoin (BTC) Exchange-Traded Funds (ETFs) applications.
This pivotal moment has the potential to reshape how investors engage with Bitcoin, providing a regulated and more accessible avenue for exposure to this digital asset.
The Bitcoin ETF Watchlist
The list of pending Bitcoin ETF applications is extensive, with deadlines spanning from January 5th to late January 2024. For ARK and 21Shares (ARKB), the expected response date is between January 5 and January 10, 2024, while the Final deadline is January 10, 2024. Some notable applicants include Grayscale Bitwise, BlackRock, VanEck, WisdomTree, Invesco Galaxy, Fidelity, Valkyrie, Global X, Hashdex, Franklin Templeton, and Pando Asset.
These dates are crucial for investors and the crypto community, representing the SEC’s final decision points for these high-profile applications. Among the applicants, BlackRock, with $9.42 trillion in Assets Under Management (AUM), stands out due to its partnership with Coinbase and a successful track record with the SEC. A positive outcome for BlackRock could be a significant catalyst for Bitcoin’s price.
Eric Balchunas, an analyst at Bloomberg, stated;
When [BlackRock] filed [for a spot Bitcoin ETF], it was a whole different ball game in my opinion. This is a firm who doesn’t like to lose, who knows what they’re doing, and they must see something [in Bitcoin].
The decision by the SEC is highly anticipated, as it could greatly influence future regulations and investment trends in the crypto space. The January 2024 deadline holds immense relevance and sets a precedent for future crypto-related financial products.
Bitcoin ETFs: A Gateway to Simplicity and Regulation
Bitcoin ETFs function similarly to traditional ETFs, offering investors an opportunity to invest in Bitcoin without the complexities associated with direct ownership. These complexities include managing crypto wallets and navigating crypto exchanges. By tracking the performance of Bitcoin, these ETFs provide a straightforward and regulated approach to investing in the world’s leading cryptocurrency.
Investing in Bitcoin ETFs comes with several advantages, such as accessibility, convenience, diversification, liquidity, and professional management. However, investors must also be aware of the potential counterparty risk, liquidity risk, market volatility, and regulatory uncertainty, particularly in light of evolving regulations in the United States.
Bitcoin ETF approval could considerably extend the investor base for the asset, ultimately leading to higher acceptance and price stability. This development comes against the backdrop of a recovering crypto market, with Bitcoin trading above $42,000 in early December. As of the time of writing, Bitcoin is priced at $42,803, marking a 4% increase in the past 24 hours. The market cap stands at $837.1 billion, while trading volume is $24.9 billion.
No coins selected
According to Matthew Sigel, VanEck’s Head of Digital Assets Research in a recent report;
We expect more than $2.4 billion will flow into newly approved US spot Bitcoin ETFs in Q1 2024 to keep the Bitcoin price elevated.
