Excitement has reached its peak for the United States’ first spot Bitcoin ETF as speculation grows on when the anticipated approval will be announced. According to sources that reached out to the American news site Axios, the US Securities and Exchange Commission (SEC) will approve at least one of the 13 spot Bitcoin ETFs on January 10th.
Spot Bitcoin ETFs Set for Approval on January 10th
According to three sources that spoke to Axios, the US SEC will approve multiple spot Bitcoin ETFs on January 10th. The sources added that the approved ETFs will be listed on the exchange and start trading on January 11th.
With the SEC’s approval of the US’s first spot Bitcoin ETF, a 10-year wait will come to an end. This will result in exchange-traded funds that hold and invest directly in Bitcoin, the largest cryptocurrency, going beyond futures ETFs that track Bitcoin’s price.
What Do Experts Say About the ETF Approval?
The general expectation in the cryptocurrency world right now is that the approval of spot Bitcoin ETFs will lead to a “buy the rumor, sell the news” event, which means the approval might initially decrease the price of the largest cryptocurrency. Despite this expectation, the ETF approval is predicted to bring a long-term rise to the market. The bullish scenario is built on the increase in both individual and institutional demand for Bitcoin through regulated spot ETFs and the expected reduction in Bitcoin supply with the fourth block reward halving in April.
Owen Lau from Oppenheimer warned that fund flows are an important signal for the market and that initial weak flows could create selling pressure on Bitcoin’s price. He highlighted a survey by Bitwise which showed that only 39% of financial advisors expected a spot ETF to launch this year, but 88% believed its approval would be a significant bullish catalyst.
Acheson and Onramp Invest CEO Tyrone Ross expect that while the initial market reaction could be disappointing, the situation will become interesting as financial advisors gain more knowledge about the cryptocurrency class in the medium to long term. Worthington from JPMorgan added that the rally initially started with the expectation of the launch of spot cryptocurrency ETFs, especially spot Bitcoin ETFs, and that continued high activity, volume, and rising prices could be supportive for the rally.
