The U.S. Securities and Exchange Commission (SEC) is currently evaluating 13 proposed spot Bitcoin ETFs, with the initial deadline for the joint application from ARK Invest and 21shares set for January 10. This has led to heightened anticipation among market participants, with major firms such as Blackrock, Vaneck, Valkyrie, Bitwise, Invesco, Fidelity, Wisdomtree, and Ark Invest and 21shares eagerly revising their filings. Fee structures for these ETFs are also being finalized, with Valkyrie and Ark Invest and 21shares proposing a 0.80% management fee, Fidelity offering a lower 0.39% fee, and Invesco presenting a 0.59% fee. Bitwise and Blackrock have plans to seed their spot Bitcoin ETFs with substantial initial investments, and Coinbase is preparing to act as a custodian for BTC held by potential ETF issuers.
In parallel, the cryptocurrency community is buzzing with rumors about the potential SEC approval of a Bitcoin ETF, fueling expectations of a price surge. However, Eleanor Terrett, a FOX journalist with direct contacts at BlackRock and the SEC, recently tweeted that the SEC’s decision on the ETF approval is not expected this week. Despite this uncertainty, Bitcoin’s price has surged past $45,000, partly in anticipation of the ETF approval, reflecting significant growth and wider acceptance in the crypto market. Analysts are optimistic, predicting that Bitcoin’s price could reach $50,000 by the end of January, supported by factors like potential ETF approvals, institutional investments, supply shortages, and historical trends.
Additionally, the next major event in the crypto calendar is the anticipated Bitcoin halving, expected around April 2024. Although the halving does not guarantee a short-term price increase, historically, the BTC price has risen significantly after 6 to 9 months following such events.
BlackRock sources have indicated that the SEC is likely to approve Bitcoin ETFs by the end of this week. The approval of these ETFs is highly anticipated by the cryptocurrency community and could significantly attract both institutional and retail investors. However, it’s important to note that the SEC’s decision is not guaranteed, and there is still a possibility that Bitcoin ETFs may face further delays or be rejected. Despite potential risks, the community remains optimistic about the approval of Bitcoin ETFs, viewing them as a way to bring more stability and credibility to the volatile cryptocurrency market.
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