As 2024 approaches, the crypto community is abuzz with the prospect of the U.S. Securities and Exchange Commission (SEC) approving Bitcoin exchange-traded funds (ETFs). Singapore-based crypto financial services platform Matrixport predicts a 95% chance that the SEC will approve Bitcoin Spot ETFs in January, which could potentially drive Bitcoin’s price above $50,000 by the end of January 2024.
Matrixport’s bullish outlook is underpinned by ongoing discussions between ETF applicants and the SEC. Recent positive developments have fueled expectations, pushing Bitcoin’s price to $44,000. The report specifically highlights talks between BlackRock, the world’s largest investment management company, and the SEC, indicating that ETF preparations are nearly complete.
The report also mentions a meeting on December 19, 2023, between Grayscale and the SEC, focusing on converting Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF. This meeting involved discussions on rule changes necessary for the conversion and trading of GBTC as an ETF.
While SEC approval for a spot Bitcoin ETF seems imminent, analysts from QCP Capital caution investors with a “buy the rumor, sell the news” warning. They suggest that the market could retreat to $36,000 before any significant rise, especially after the ETF approval, despite the resistance zone between $45,000 and $48,500.
Amidst these expectations, discussions have emerged about the SEC potentially giving conditional approval to ETFs after January 8, addressing money laundering risks. Fox Business’s Charles Gasparino speculates that the SEC might grant conditional approval, with the final decision expected between January 8-10.
The crypto world eagerly awaits the SEC’s decision on ETFs, anticipating that approval could propel Bitcoin and the altcoin market to new heights. However, warnings from market observers, analysts, and experts about potential hurdles should not be ignored.
