Is Bitcoin Spot ETF Approved Soon? Summarize the latest developments in one article

Looking forward to the ETF news on January 10th.

Written by: Meteor, ChainCatcher

On the occasion of its 15th anniversary, Bitcoin experienced a sharp decline, falling from US$45,000 to US$41,000, with an intraday drop of approximately 10%. Some people believed that it was a market correction or the impact of US stocks. Most people believed that it was due to Matrixport. Following the plunge triggered by the report, Matrixport released a report yesterday stating that the SEC is expected to reject all Bitcoin spot ETF proposals in January, which will lead to large-scale liquidation activities in the market and the price of Bitcoin may quickly fall by 20%.

Just the day before the report was released, Markus, an analyst at Matrixport, had said that Bitcoin would rise to $50,000 in January 2024. Matrixport’s “changes” were also considered by many to be manipulating market currency prices. After Bitcoin plummeted, Matrixport Lianchuang Wu Jihan also wrote that Matrixport analysts did not publish two diametrically opposed views on the same day. They just made their own analysis as the market changed and could not affect the market’s collapse. .

It turns out that the market plunge has little to do with Matrixport. Matrixport just made its own predictions. Bitcoin quickly rebounded after the plunge and briefly broke through to $44,000.

But in fact, there has been a lot of news about the approval of Bitcoin spot ETFs recently. Fox Business reported an article yesterday that sources said that staff from the SEC’s trading and markets department will work with major exchanges (New York Stock Exchange , Nasdaq and Chicago Board Options Exchange) officials held a meeting. Although the final decision has not yet been made, the meeting is regarded as a positive signal. The SEC may begin to notify ETF issuers of approval this Friday (today), and transactions may be as early as Starting next week.

ETF analysts and issuers unanimously believe that the SEC will make a favorable decision on or before January 10. January 10 is the SEC’s final deadline to decide whether the ETF is approved and whether to approve Sister Mu’s ARK Investment Management LLC and 21Shares Bitcoin spot ETF application submitted.

About the approval of Bitcoin spot ETF

There has been a lot of content about ETF approval recently. Bloomberg ETF analyst Seyffart James said in an interview that the Bitcoin ETF is likely to be approved around January 10. James had also predicted that Grayscale would be in talks with the SEC. Won the lawsuit, the following is a summary of his views on Bitcoin ETF:

The recent frequent meetings and meetings between the SEC and ETF issuers indicate that both parties are taking a more collaborative and open approach to address issues and concerns related to ETFs, and the SEC is working hard to adjust and finalize these documents for adoption and approval According to these documents, James believes that all Bitcoin ETFs may not be approved, but it is very likely that most of them will be approved.

Grayscale won the court case with the SEC, which also significantly changed the situation. Afterwards, the SEC did not choose to appeal. In addition, the SEC only postponed but did not reject the approval of ETFs such as Fidelity, BlackRock, and VanECK, which also made it even more difficult. Convinced that Bitcoin ETF will be approved soon.

The SEC will have a consultation period during the review of ETFs. From professionals to ordinary users, everyone’s comments on ETFs will have an impact on the SEC to a greater or lesser extent. The SEC may approve the ETF as soon as possible to avoid a lengthy consultation period. In this period, in theory, the final approval deadline for Ark and 21shares ETFs is January 10. Of course, it would be reasonable if they were approved earlier than January 8.

It is difficult for the SEC to only approve a certain Bitcoin spot ETF. Just like the previous launch of Bitcoin futures, if simply approving a certain one may cause a tilt in market share, the ETF launched later will lower some purchasing standards, which will Leading to market capital outflows, the SEC needs to promote and maintain market fairness.

The Bitcoin market has grown and matured significantly over the years, with better infrastructure, greater institutional participation, and a stronger regulatory framework. ETF issuers continue to update S-1 documents, gradually address the SEC’s concerns, and agree to many of the SEC’s approval requirements.

The growing interest in Bitcoin spot ETFs from established financial institutions has also played a role in promoting regulatory transparency and ETF approval.

What can Crypto bring after being approved?

The approval of Bitcoin ETFs may lead to billions or even more dollars of assets flowing into the cryptocurrency market. In addition, trading platforms such as Coinbase, as custodians and providers, will also enhance market stability and investor confidence, promoting cryptocurrencies such as BTC. of rise. In addition, this can also provide an opportunity for a wider range of investors to get involved in encryption. For many investors who want to get involved in the encryption field, some are not willing to spend time or energy to understand the basic knowledge and practical operations of blockchain or comply with SEC regulations. There are some rules for cryptocurrency custody, but if you still want to nominally own Bitcoin, buying a spot ETF is a good way. ETF approval will further democratize investment in traditional markets.

As institutions enter Bitcoin spot ETFs, institutional and retail demand for cryptoassets backed by real-world assets is likely to grow, driving the development of the RWA tokenization field. For example, as the tokenization of real estate and other assets may become a leading trend in Crypto in 2024, or make real estate investment easier, provide fractional ownership or faster settlement processes, tokenization may also replace some in the future. Investment trust funds.