Despite expectations, a spot Bitcoin ETF has not been approved at the time of writing, contrary to Bloomberg experts’ predictions of a decision between January 8-10. Analysts are considering the potential impact of such an approval on cryptocurrency prices. The BTC price has been trending upward since the beginning of 2023, with a noticeable rally in the first and last quarters and current trading above a critical resistance area.
Speculation about the potential approval of a BTC ETF has kept investors on edge this week. The anticipated approval could position Coinbase as a bridge between the crypto markets and ETFs, with the size of assets held by issuing companies being of significant importance.
Eric Balchunas, a senior ETF analyst at Bloomberg, expects a BTC ETF approval but predicts noise before the decision. Recent news based on “inside sources” has led to disappointments. Balchunas suggests that verbal confirmations and re-filings of 19b-4 forms might indicate an approval, but nothing is official until the SEC confirms.
The official approval is highly likely to come next week, potentially triggering an anticipated rise in cryptocurrency prices. Crypto analyst Scott Melker believes issuers are already aware of the ETF approvals and are preparing accordingly, while Caitlin Cook highlights the long-term implications, noting that the Registered Investment Advisory industry manages $114 trillion in assets. With many individuals globally seeking a modest crypto allocation for potential growth, billions of dollars could soon flow into the sector.