Bitcoin price losing its excitement should not worry investors as the SEC has given its definitive approval. Investors who witnessed two incorrect approval announcements and saw the SEC remove the official announcement from its website are having difficulty believing in the latest spot Bitcoin ETF approval. They are not without reason, but the spot Bitcoin ETF has been approved beyond doubt.
Spot Bitcoin ETF Approval
In June, when BlackRock applied for a spot Bitcoin ETF, we mentioned that the likelihood of approval had significantly increased. To date, the world’s largest asset manager, having only received one rejection for an ETF, has managed to bring the SEC to its knees after the GBTC victory along with its partners.
Gensler stated in his remarks that it was as if he had to approve it despite hating it.
“While other ETFs have a use in the industry, such as precious metals, BTC is a speculative asset. It is used to evade sanctions, as well as in financing cybercrimes and terrorism.”
During this process, the hacking of an account and the removal of the official announcement from the website, which caused a brief panic, could lead to a serious investigation by the SEC. I can almost see Gary Gensler stuttering in front of Congress when asked “what was all this nonsense” days or weeks later.
Critical 48 Hours
In the next two days, we will see how much volume the ETFs generate. Even though BTC is calm at the moment, the volume created by institutional and accredited investors could ignite a rapid rise. As we have mentioned many times, spot Bitcoin ETFs cause a supply shortage and support price increases.
Bloomberg predicts a $4 billion entry into spot Bitcoin ETFs on the first day of trading, with $2 billion of that potentially coming directly from BlackRock. What about the other 9 issuers? All this seems like sufficient reason for investors to turn bullish on Bitcoin in the medium and long term.
There’s a halving in about 100 days, interest rate cuts by the Fed are expected in the second quarter, and many structural issues in crypto have now been resolved. The upcoming 48-hour volume data will help us understand the extent of growth in crypto in the medium and long term.
Now everyone can have a good night’s sleep until the stock market opens tomorrow.
