As 2024 approaches, the agenda of the cryptocurrency world includes the expected approval of Bitcoin exchange-traded funds (ETFs) from the U.S. and what could happen after such approval. In this context, Singapore-based crypto financial services platform Matrixport stated in its latest report that it expects the U.S. Securities and Exchange Commission (SEC) to approve Bitcoin Spot ETFs with a 95% probability in January. Moreover, the company predicted that if the SEC grants this approval, the price of Bitcoin could rise above $50,000 by the end of January 2024.
Emphasis on Ongoing Discussions Between SEC and ETF Issuers
Behind Matrixport’s optimistic forecast for the largest cryptocurrency are ongoing discussions between ETF applicants and the SEC. Indeed, Bitcoin’s price has risen to $44,000 with the increase in approval expectations following recent positive developments. The report featuring Matrixport’s optimistic forecast highlighted the discussions between the world’s largest investment management company BlackRock and the SEC, indicating that preparations for the ETF are nearly complete.
The report also mentioned a meeting held on December 19, 2023, between Grayscale and the SEC, where the agenda focused on converting the Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF. As is known, this meeting discussed the rule changes necessary for converting GBTC into an ETF and its trading.
QCP Capital Analysts Warn of “Buy the Rumor, Sell the News” in Bitcoin
As the SEC’s approval of a spot Bitcoin ETF seems almost certain, analysts from QCP Capital issued a warning. They pointed out the resistance zone between $45,000 and $48,500, suggesting that the market could transition to a “buy the rumor, sell the news” scenario after the ETF approval, and warned that the price could retract to as low as $36,000 before a significant rise.
Amidst such a drop expectation, discussions emerged about conditional approval for ETFs. Charles Gasparino from Fox Business suggested that the SEC could grant conditional approval to ETFs after January 8, with measures to address money laundering risks. The final decision of the SEC on ETF applications, balancing the facilitation of the process and the prevention of illegal activities, is expected to be made between January 8-10.
Currently, the cryptocurrency world is eagerly awaiting the SEC’s ETF decision, anticipating that approval will propel Bitcoin and the altcoin market to new heights. However, warnings from various market observers, analysts, and experts about potential obstacles should not be ignored.
