Despite Bitcoin‘s price returning to $42,000, investors have reasons to remain optimistic for the medium and long term. The latest report by K33 suggests exciting times ahead. As January approaches, let’s delve into market experts’ expectations.
According to a recent report by K33 Research, a definitive date of January 10 is now set for the approval of spot Bitcoin ETFs. Experts believe the end of the road is near due to file updates indicating acceptance of a cash creation setup before the end-of-January deadline.
BlackRock has submitted a revised prospectus to the Securities and Exchange Commission, including a new cash redemption model preferred by analysts. The CEO of Galaxy predicts approval could come even before January 10. If approved, BlackRock’s Spot Bitcoin ETF will trade under the ticker “IBIT”.
K33’s Senior Analyst Vetle Lunde and Vice President Anders Helseth suggest that the updates on filings are another signal in favor of ETF approvals in the coming weeks. Bloomberg Intelligence ETF analyst James Seyffart also reiterated that the final dates for a potential spot Bitcoin ETF approval are between January 8 and 10, a prediction held since October.
Analysts note that the recent rally has attracted buyers for Bitcoin, but there are also those who have successfully taken profits without causing significant price fluctuations. While open interest increases on the CME, there isn’t as much demand on crypto derivative exchanges, indicating that claims of a price bubble are unfounded. Institutional demand on the Chicago Mercantile Exchange is evident, with transactions at a 17% annual premium compared to the previous week’s 12%. Lunde and Helseth expect a significant shift from CME’s futures-based ETF to spot Bitcoin ETFs upon approval, potentially reducing CME’s market dominance and doubling the current volume as liquidity shifts to the spot ETF side.