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Tag: Spot Bitcoin ETF

  • Coinbase Custody Head Departs As Crypto Giant Prepares For Bitcoin ETF Services

    Coinbase Custody Head Departs As Crypto Giant Prepares For Bitcoin ETF Services

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    According to Bloomberg, Coinbase Global has recently experienced a change in leadership within its custody division. The departure of Aaron Schnarch, former CEO of Coinbase Custody, has been confirmed by a spokesperson, who also revealed that Schnarch was replaced by Rick Schonberg in August.

    Per the report, the transition aligns with Coinbase’s efforts to offer services to applicants of spot Bitcoin (BTC) exchange-traded funds (ETFs).

    Coinbase Affirms Readiness For Bitcoin ETF Approval

    Rick Schonberg, who joined Coinbase in 2021, aims to provide experience to his new role, having previously worked at reputable financial institutions such as Goldman Sachs, State Street, and Tagomi, according to Bloomberg. 

    Coinbase on the other hand, has emerged as the preferred choice for custodial services among Bitcoin ETF applicants, including industry giants like BlackRock, Franklin Templeton, and Grayscale Investments.

    Custody services play a crucial role for potential managers of spot Bitcoin ETFs, as investors rely on these providers to securely safeguard their digital tokens.

    Notably, a Coinbase spokesperson emphasized the company’s preparedness for ETF approval, stating to Bloomberg: 

    We have extensively prepared for ETF approval. Our systems have been designed and tested to handle added trading volume, increased liquidity, and general increases in demand on our systems.

    Coinbase Custody, operating as a trust company, falls under the regulatory oversight of the New York Department of Financial Services and undergoes auditing by Deloitte & Touche.

    Countdown To Historic Decision

    The race to obtain regulatory approval for the first ETF directly investing in the largest cryptocurrency, Bitcoin, is entering a critical phase. 

    The US Securities and Exchange Commission (SEC) faces a deadline of January 10 to decide whether to approve a spot Bitcoin ETF application submitted by ARK Investment Management, led by Cathie Wood, and 21Shares, along with potentially other similar filings.

    Overall, the departure of Aaron Schnarch and the subsequent appointment of Rick Schonberg within Coinbase Custody highlight the company’s strategy to the growing demand for custodial services from Bitcoin ETF applicants. 

    With the potential approval of spot Bitcoin ETFs on the horizon, the industry eagerly awaits the SEC’s decision, which will have far-reaching implications for the adoption and mainstream acceptance of cryptocurrencies.

    The 1-day chart shows BTC’s sideways price action over the past 24 hours. Source: BTCUSDT on TradingView.com

    Bitcoin, the largest cryptocurrency in the market, is currently trading at $42,100, representing a 1.1% decline over the past 24 hours. 

    In recent weeks, BTC’s price has been consolidating above $40,000, exhibiting sideways movement since the beginning of December. However, it has achieved a notable gain of over 11% in the last 30 days.

    It remains to be seen how the price of BTC will react to the potential approval of these index funds by the largest asset managers in the world, and what other impact it will have on the overall crypto market.

    Featured image from Shutterstock, chart from TradingView.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Ronaldo Marquez

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  • Matrixport Foresees Bitcoin Hitting $50,000 Price Mark: Here's When

    Matrixport Foresees Bitcoin Hitting $50,000 Price Mark: Here's When

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    Matrixport, a crypto financial services firm founded by Jihan Wu, former CEO of Bitmain has recently shared a summary that delves into its forecast for Bitcoin, predicting a significant surge in its price.

    Founded in 2019, Matrixport has been closely monitoring Bitcoin’s market dynamics and trends. Their recent analysis suggests a robust future for Bitcoin, particularly noting its potential to break the $50,000 barrier by 2024.

    Spot ETF Approval Could Catapult Bitcoin Above $50,000

    Matrixport bases its optimistic forecast on the anticipated approval of Bitcoin spot ETFs by the US Securities and Exchange Commission (SEC) in January. This crucial regulatory nod is seen as a pivotal factor that could propel Bitcoin’s price to soar above $50,000.

    The summary draws a parallel to a previous significant moment in Bitcoin’s history – the launch of Bitcoin futures by the CME Group and CBOE in December 2017. That event marked a notable spike in Bitcoin’s price, pushing it to reach $20,000 for the first time.

    Matrixport equates the potential impact of spot ETFs to this historical milestone, anticipating a similar, if not greater, market reaction.

    Industry Experts Echo Matrixport’s Optimism

    Matrixport is not alone in its bullish stance on Bitcoin’s prospects. Other industry experts and analysts have echoed similar predictions, especially in light of the probable approval of a spot Bitcoin ETF.

    Michael van de Poppe, a prominent crypto analyst, recently suggested that Bitcoin is poised to reach the $47,000-$50,000 range soon. Van de Poppe, just like Matrixport, attributes this potential surge to the anticipated approval of spot BTC ETFs by leading financial entities like BlackRock, Fidelity, and Ark Investment.

    Investment management firm VanEck also shares this sentiment, forecasting a substantial influx of funds into spot Bitcoin ETFs. They predict over $2.4 billion pouring into these spot ETFs in the first quarter of 2024 alone.

    VanEck’s report highlights a growing investor trend towards ‘hard money’ assets, which are less influenced by US authorities. Bitcoin, with its resilience and limited correlation to traditional financial markets, according to VanEck, stands out as a particularly attractive option for investors.

    VanEck analysts also hold a firm belief in Bitcoin’s market stability, projecting that its price will likely not fall below $30,000 in early 2024. This prediction is reinforced by another analyst, Ali, who has identified a robust support zone for Bitcoin between $37,150 and $38,360.

    This range is backed by substantial buying activities from around 1.52 million addresses, accumulating approximately 534,000 BTC. Ali’s analysis suggests that this significant accumulation acts as a strong foundation, potentially preventing further downturns in Bitcoin’s value.

    Bitcoin (BTC) price is moving sideways on the 4-hour chart. Source: BTC/USDT on TradingView.com

    Featured image from Unsplash, Chart from TradingView

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Samuel Edyme

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  • Michael Saylor: Spot Bitcoin ETFs a game-changer

    Michael Saylor: Spot Bitcoin ETFs a game-changer

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    MicroStrategy executive chairman Michael Saylor recently emphasized the potential impact of upcoming spot Bitcoin ETFs on the markets.

    In a Bloomberg TV interview, Saylor asserted that this development could be the most significant on Wall Street in three decades, drawing a parallel with the introduction of the S&P 500 ETF. According to Saylor, mainstream investors have lacked a “high bandwidth” compliant channel for investing in Bitcoin, a gap that the spot Bitcoin ETF is poised to fill.

    “Spot Bitcoin ETFs may be the biggest development on Wall Street in the last 30 years.”

    Michael Saylor

    Saylor anticipates a demand shock for Bitcoin (BTC), driven by the introduction of the spot ETF, followed by a supply shock during April’s halving, reducing daily Bitcoin production from 900 to 450. Despite forecasting a major bull run for Bitcoin in the coming year, Saylor refrained from speculating on specific price levels.

    Addressing concerns about the potential diversion of investor demand from MicroStrategy to a spot ETF, Saylor highlighted MicroStrategy’s distinct position as an operating company capable of using cash flow or “intelligent leverage” to bolster its Bitcoin holdings. Unlike ETFs, MicroStrategy does not charge ownership fees.


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    Bralon Hill

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  • Analyst Rates Bitcoin As The Most Promising Asset For 2024, Predicts Price Potential Of $120,000

    Analyst Rates Bitcoin As The Most Promising Asset For 2024, Predicts Price Potential Of $120,000

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    Chief analyst of Singaporean exchange Bitget, Ryan Lee, has laid out some interesting Bitcoin price predictions for 2024. This forecast comes after BTC’s negative performance in the last week, where the maiden cryptocurrency declined by 4%, falling below the $42,000 price mark. 

    Bitcoin To Trade At $120,000 In 2024 – Ryan Lee 

    In an X post on December 17, crypto data platform Brave New Coin shared Ryan Lee’s projections for Bitcoin in the new year, which were presented in three phases. 

    For the short term, Lee anticipates Bitcoin’s price to fluctuate between $32,000-$50,000 as determined by the outcome of the spot ETF approval saga in the US. Currently, many crypto enthusiasts are highly optimistic about the SEC finally granting a green light to the launch of a spot Bitcoin ETF, following multiple meetings between the regulator and several asset managers involved.

    According to Bloomberg analyst James Seyfarrt, there is a 90% chance that this potential approval order will come between January 8th and January 10th, 2024, meaning Bitcoin’s price may be set for a major movement in the coming weeks.

    In regards to the mid-term phase, Ryan Lee predicts Bitcoin prices to range between $38,000 – $75,000 based on the effects of the halving event, which is historically known to cause a rise in BTC prices. This is because the halving event causes a reduced rate of new Bitcoin minting, which leads to scarcity, in turn boosting the token’s demand and price.

    In the long term, Bitget chief analyst projects Bitcoin to trade between $40,000 and $120,000 in 2024. He believes the major determinant in BTC price at this time would be US policy and regulations guiding the use of cryptocurrency.

    At the time of writing, Bitcoin trades at $41,874.33, with a decline of 0.12% in the last hour. Meanwhile, the token’s daily trading volume is down by 16.99% and valued at $14.85 billion.

    BTC trading at $41,921 on the daily chart | Source: BTCUSD chart on Tradingview.com

    Lee’s Take On The Altcoin Market

    Alongside Bitcoin, Lee has also given some interesting predictions on the top tokens in the altcoin market for 2024. The Bitget executive expects Ethereum (ETH) could outperform BTC and trade between $3,000 and $3,500. By the end of 2024, Lee predicts ETH could attain a historic price point of $4900.

    Meanwhile, the analyst expects XRP to trend in a similar fashion as BTC, hitting a price range of $1-$1.5 in 2024. In addition, Lee also projects that ADA could reach $1.2-$1.8 pending a significant growth of the Cardano ecosystem.

    Featured image from InfoWorld, chart from Tradingview

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Semilore Faleti

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  • 3 key firms dominate the ETF market: What does it mean for Bitcoin ETFs?

    3 key firms dominate the ETF market: What does it mean for Bitcoin ETFs?

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    The U.S. ETF market, valued at approximately $8 trillion, largely hinges on three key firms. 

    Essential to the ETF ecosystem, authorized participants (APs), a specialized type of broker-dealer, have not expanded in number despite the sector’s rapid growth. These APs play a crucial role in ensuring every North American ETF’s liquidity and efficient operation. 

    Bloomberg’s analysis of over 3,400 fund filings reveals that most U.S. ETF flows are managed by just three firms – Bank of America, Goldman Sachs, and JPMorgan. In fact, for many funds, over 90% of all capital movements are controlled by these three APs. Astonishingly, several hundred ETFs rely solely on a single AP for their liquidity needs, based on the latest comprehensive data quarter.

    What does it mean for the potential Bitcoin ETFs in 2024? 

    Relying on a few APs could introduce heightened concentration risks in the Bitcoin ETF space. Given the volatile nature of cryptocurrencies, the efficiency and resilience of these key firms will be under scrutiny, especially in managing high-volume transactions and ensuring liquidity.

    The existing oligopoly of APs may also influence the pricing and accessibility of Bitcoin ETFs. The firms’ pivotal role in cash flow management could impact how these new ETFs are priced and traded, potentially affecting investor access and returns.

    Most importantly, the SEC’s decision-making process might consider this concentration. The regulator could consider the need for a more diversified AP landscape to ensure a robust and resilient market, especially given the novel nature and potential risks associated with Bitcoin ETFs.

    The SEC has been actively discussing with BlackRock and several other Bitcoin ETF applicants this month for a potential approval in January. The current market rally has been largely attributed to this hype of Bitcoin ETFs. However, with such concentrated operations in the current ETF market, the community should anticipate potential complexities and challenges for crypto-based ETFs. 


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    Mohammad Shahidullah

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  • Gensler: SEC reevaluating spot Bitcoin ETF with fresh perspective

    Gensler: SEC reevaluating spot Bitcoin ETF with fresh perspective

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    U.S. Securities and Exchange Commission Chair Gary Gensler indicated a possible change in the agency’s approach towards Bitcoin ETFs.

    During a CNBC interview, Gensler revealed that the U.S. Securities and Exchange Commission (SEC) is reconsidering “between eight and a dozen filings” for spot Bitcoin ETFs, a move influenced by recent court decisions in the District of Columbia.

    Historically, the SEC has hesitated to approve such proposals, citing various concerns. However, Gensler hinted at a shift, attributing it to judicial input. While he avoided directly referencing the Grayscale case, the context suggests a connection. Earlier this year, Grayscale won a legal battle against the SEC, leading to a reassessment of its application to convert its Bitcoin trust into an ETF. This decision was not appealed by the SEC.

    Grayscale’s progress, alongside others rooting for ETF approval, has stirred optimism in the market. Bloomberg analysts James Seyffart and Eric Balchunas noted ongoing discussions between the SEC and Grayscale, indicating a collaborative effort toward regulatory compliance.

    The race for a Bitcoin ETF has attracted diverse players, including major asset managers like BlackRock. With the SEC set to decide on ARK and 21Shares’ proposal by Jan. 10, anticipation is high. Bloomberg analysts estimate a 90% chance of approval, though skeptics like former SEC staffer John Reed Stark deem such optimism “absurd.”


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    Bralon Hill

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  • Bitwise forecasts Bitcoin at $80,000 in 2024

    Bitwise forecasts Bitcoin at $80,000 in 2024

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    Per Bitwise Asset Management, 2024 predictions include Bitcoin reaching unprecedented heights with a new all-time high.

    The Dec. 13 post on X suggests that the spot Bitcoin ETF is anticipated to be the most successful ETF launch ever, launching the cryptocurrency to potentially $80,000. Coinbase is projected to experience a remarkable doubling of its revenue.

    Bitcoin’s new peak?

    Ryan Rasmussen, a senior crypto research analyst at Bitwise Asset Management, shares in the first of 10 predictions that Bitcoin would reach a new all-time high. The ascent is attributed to two key factors: the imminent introduction of a spot Bitcoin ETF in early 2024 and the scheduled halving of new Bitcoin supply by the end of April.

    The second forecast focuses on the approval and subsequent success of spot Bitcoin ETFs, which are projected to collectively achieve the title of the most triumphant ETF launch in history. Over the next five years, these ETFs are estimated to secure 1% of the $7.2 trillion U.S. ETF market, amounting to $72 billion in assets under management.

    Another Bitwise prediction suggests that Coinbase’s revenue will increase twofold, exceeding Wall Street projections by a minimum of 10 times. The basis for this expectation lies in historical trends where Coinbase experiences heightened trading volumes during bullish market phases. 

    The thread follows up with the prediction that more financial transactions will be settled using stablecoins than Visa. Stablecoins, considered one of crypto’s “killer apps,” have burgeoned from virtually zero to a $137 billion market over the past four years. The forecast for 2024 anticipates continued substantial growth in the utilization of stablecoins, surpassing traditional payment methods such as Visa.

    Entering a crypto spring

    These predictions align closely with an earlier interview from Bitwise’s Chief Investment Officer, Matt Hougan, on Dec. 6, in which he anticipates short-term volatility following this year’s significant surge, a forecast that aligns with the outlook for new all-time highs for Bitcoin within the next 6-12 months.

    Additionally, the CIO declares the conclusion of the crypto bear market, often referred to as crypto winter, and the transition to what he defines as a crypto spring.


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    Sarah Jansen

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  • Cathie Wood: spot Bitcoin ETF seen as ultimate endorsement for institutional investors

    Cathie Wood: spot Bitcoin ETF seen as ultimate endorsement for institutional investors

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    Cathie Wood believes the SEC’s decision on spot Bitcoin ETFs may significantly impact institutional crypto adoption.

    Wood views this imminent approval as a pivotal moment, suggesting that such approval could be the “final seal of approval” for institutions considering crypto investments. In collaboration with 21Shares, ARK Invest awaits a decision on their ARK 21Shares Bitcoin ETF (ARKB) proposal, with a ruling expected by Jan. 10.

    The SEC’s previous approval of Bitcoin futures ETFs in October 2021 was seen as a cautious yet progressive step despite concerns about counterparty risks compared to spot products backed by Bitcoin in cold storage. Most Bitcoin ETF proposals name Coinbase as the custodian, which adds a layer of security and legitimacy.

    A court victory in July by Grayscale Investments against the SEC further underscores the tension and evolving landscape. The court criticized the SEC’s decision to deny Grayscale’s Bitcoin ETF conversion while allowing futures-based funds, labeling it “arbitrary and capricious.”

    Wood’s optimistic forecast for Bitcoin’s value (BTC), predicting it could exceed $1 million in the long term, is matched by Bloomberg Intelligence analysts’ high confidence in approving a spot Bitcoin ETF by Jan. 10. This optimism is a departure from the SEC’s historical reluctance to support spot Bitcoin ETFs.

    21Shares President Ophelia Snyder noted recent pattern breaks in the approval process, indicating a potential shift in the SEC’s stance. Recent updates in Bitcoin ETF filings, such as BlackRock’s inclusion of seed capital language and technical amendments addressing concerns like Bitcoin mining’s electricity usage, suggest an active dialogue with the SEC.

    The entrance of major firms like BlackRock into the Bitcoin ETF space has reinvigorated efforts by other financial giants like Fidelity and Invesco. Wood anticipates that multiple firms, including ARK Invest, could receive approval simultaneously, depending on their filing specifics.


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    Bralon Hill

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  • SEC Insider: Bitcoin ETF Approval Probability Surges Beyond 99% As BTC Hits Fresh Yearly High

    SEC Insider: Bitcoin ETF Approval Probability Surges Beyond 99% As BTC Hits Fresh Yearly High

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    In the countdown to the deadline for the long-awaited Bitcoin ETF applications by major asset managers worldwide, predictions regarding the rate of approval have significantly improved. 

    Inside sources from the US Securities and Exchange Commission (SEC) indicate that Bloomberg’s initial 90% chance prediction of approval has now surged beyond 99%. 

    This development has heightened the excitement surrounding this investment vehicle, which has the potential to bring substantial inflows of capital into the Bitcoin market and further amplify its year-to-date gains of over 153%.

    Market Sentiment Soars As Bitcoin ETF Approval Probability Surpasses 99%

    Andrew, an SEC insider, shared an update on X (formerly Twitter), stating that the 99% probability of a Spot Bitcoin ETF being approved is no longer deemed high enough. 

    While acknowledging that nothing is ever certain, the source emphasized that the current likelihood of approval surpasses the 99% estimate from the previous week.

    The sentiment in the market is clearly reflected in the price movement of Bitcoin, as it continues to establish new yearly highs and display unwavering bullish momentum. 

    Currently trading at $42,900, Bitcoin recently reached a fresh annual peak of $43,400 on Tuesday. Over the past 24 hours, the largest cryptocurrency has surged by 4%, and it has witnessed a remarkable increase of over 14% in the past seven days.

    BTC’s uptrend on the daily chart. Source: BTCUSDT on TradingView.com

    It is worth noting that the prospect of a Bitcoin ETF being approved has captured the attention of investors and industry participants alike. If approved, the ETF would provide a regulated and accessible investment vehicle for institutional and retail investors, potentially bringing significant liquidity to the cryptocurrency market. 

    The spike in approval forecasts to over 99% has further fueled optimism that this milestone decision is imminent. While nothing can be guaranteed, the growing confidence in Bitcoin ETF approval and the cryptocurrency’s impressive price performance underscores the potential for a significant positive impact on the market. 

    As the final deadline approaches, market participants eagerly await the SEC’s decision, anticipating a potential game-changer for the Bitcoin ecosystem and its ongoing growth.

    BTC Faces Crucial Range High Resistance

    Renowned crypto analyst Rekt Capital has shed light on Bitcoin’s recent price action, emphasizing the significance of key support and resistance levels within a specific price range. 

    In late November, Rekt Capital identified a range between $36,120 and $43,200, highlighting the importance of the lower boundary for a potential upward move.

    Bitcoin successfully tested and held the range’s lower boundary as support, resulting in a substantial rally in recent days. The primary objective now, according to Rekt, is to revisit the upper boundary, known as the black $43,900 range high resistance, as seen in the chart below.

    Bitcoin ETF
    BTC’s next target at $43,900. Source: Rekt Capital Newsletter.

    Rekt Capital underscores the importance of the black Range High resistance as a crucial reference point for Bitcoin’s price. During the parabolic phase of the 2021 Bull Market, Bitcoin managed to break above this level relatively easily. 

    On two occasions, the cryptocurrency surged beyond the black level, with the first instance followed by a retest of the level as a new support, leading to further upward momentum. 

    The second instance occurred later in the year when Bitcoin successfully retested the black level as short-term support before continuing its ascent.

    However, late in 2021, Bitcoin lost the black level as support (first red circle from the left) and experienced a fake breakout above it, subsequently entering a multi-week downtrend. 

    Rekt Capital highlights that Bitcoin’s historical performance suggests the cryptocurrency needs to successfully retest the black $43,900 level as support to pave the way for further upward movement.

    Featured image from Shutterstock, chart from TradingView.com 

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    Ronaldo Marquez

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  • Bitcoin Price Stalls Below $38,000 Amid BlackRock-SEC Talks

    Bitcoin Price Stalls Below $38,000 Amid BlackRock-SEC Talks

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    The Bitcoin price rose to $38.475 yesterday, marking a marginally higher high for the year. Nevertheless, the price did not manage to close the day above the important $38,000 mark. Shortly before the end of the day, the bears managed to push the price down again.

    As crypto analyst Daan Crypto Trades remarked, “Market does its best to shake out everyone trying to pre-position for a possible Bitcoin ETF approval. It’s just free liquidity for the MMs/Whales. Sweep highs, trap longs, squeeze out longs, bait shorts, front run lows and repeat the whole process.”

    Bitcoin price | Source: X @DaanCrypto

    BlackRock Argues With SEC Over Details Of Spot Bitcoin ETF

    In a notable development, BlackRock, the world’s largest asset manager, has been again actively engaged in discussions with the US Securities and Exchange Commission (SEC) concerning the structure of its spot ETF yesterday.

    Eric Balchunas, senior ETF analyst at Bloomberg, revealed, “BlackRock met with the SEC’s Trading & Markets division again yesterday and presented them with a ‘revised’ in-kind model design based on Staff’s comments at their 11/20 meeting.” This revised model includes a notable change in the process, specifically at ‘Step 4’, which is the offshore entity market maker acquiring Bitcoin from Coinbase and then pre-paying in cash to the US registered broker dealer who is not allowed to touch BTC.

    James Seyffart, another Bloomberg analyst, highlighted the ongoing negotiations, adding, “More confirmation that Issuers are still meeting with the SEC. BlackRock/Nasdaq still pushing for In-Kind creation & redemption. Seems like SEC hasn’t budged on cash creates demands if this was the primary focus of the meeting. At least not before yesterday, Interesting days ahead!”

    The original “In-Kind Redemption” flow had Market Maker’s Broker/Dealer entity (MM-BD) placing an order for redemption through the Authorized Participant (AP), who approves the order, allowing MM-crypto to borrow Bitcoin (or cash) to sell short. This redemption flow had potential balance sheet impacts and risks that the SEC was concerned about.

    BlackRock has now proposed a “Revised In-Kind (‘Prepay Model’)” Redemption flow. This new model involves MM-crypto delivering cash to MM-BD instead of Bitcoin, and MM-BD then delivers ETF shares to the Transfer Agent via API. The Bitcoin custodian is instructed by the issuer to transfer Bitcoin to MM-crypto, who then closes the short position in BTC.

    The benefits of this revised model are manifold. It aims to lower transaction costs and shifts the execution risks from investors to crypto market makers. It also claims to provide superior resistance to market manipulation and remove the need for issuers to finance or pre-fund sell trades. The reduction in risks of operating events and the simplification across the ecosystem could mean lower variance on how In-kind models can be executed versus cash models.

    BlackRock Bitcoin ETF
    BlackRock’s Bitcoin ETF structure “in-kind” | Source: X @EricBalchunas

    90% Odds Of Approval Remain

    Should the SEC approve this revised model, it could herald the introduction of the first US-based spot Bitcoin ETF, a significant milestone that would allow investors to gain direct exposure to Bitcoin rather than through derivative instruments like futures. Despite these developments, there remains a level of uncertainty surrounding the SEC’s stance on the matter, particularly regarding the implications of spot Bitcoin exposure for retail investors through an ETF.

    Recent leaks suggested the SEC might prefer cash creation processes over in-kind Bitcoin transfers, a move that could significantly alter the landscape for ETF issuers and broker-dealers dealing with Bitcoin. Nonetheless, Bloomberg’s ETF analysts have reiterated their 90% odds for a spot ETF approval by January 10 yesterday.

    At press time, BTC traded at $37,728.

    Bitcoin price
    BTC price falls below $38,000, 4-hour chart | Source: BTCUSD on TradingView.com

    Featured image from Shutterstock, chart from TradingView.com

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    Jake Simmons

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  • Spot Bitcoin ETF Odds ‘Might Have Increased To 100%’: Matrixport

    Spot Bitcoin ETF Odds ‘Might Have Increased To 100%’: Matrixport

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    Matrixport, a leading digital finance platform, today, November 22, released a comprehensive research note focusing on the significant implications of yesterday’s developments in the crypto industry, particularly regarding the prospects of a spot Bitcoin Exchange-Traded Fund (ETF) in the United States.

    Following the guilty plea of Binance CEO Changpeng Zhao (CZ) and the substantial financial settlements involved, Matrixport suggests that the path for approving a spot Bitcoin ETF might have become significantly clearer. The note highlights the regulatory crackdowns and compliance upgrades in the crypto sector, indicating a shift towards greater regulatory alignment with traditional financial (TradFi) systems.

    “Some would argue that the US agencies have cleaned up the industry this year by dismantling the US crypto-related banks, as two of them were running an internal ledger that crypto companies could use 24/7 to transfer fiat. Arguably, few (perceived) major actors are left, and with Bitcoin only declining -3.4% during the last 24 hours, the market is stomaching a major risk-off event,” Matrixport remarks.

    Spot Bitcoin ETF Approval Odds At 100% Now?

    The company points out that with stringent enforcement actions and enhanced compliance programs becoming the norm among crypto exchanges, the differentiation between regulated and non-regulated cryptocurrency exchanges may become a key metric in 2024. This shift is seen as instrumental in the potential approval of a spot Bitcoin ETF in the US, a development long anticipated by the industry.

    “The result will likely be that more exchanges will enhance their compliance programs and become part of a surveillance-sharing agreement, which will be instrumental in approving a spot Bitcoin ETF in the US,” the firm stated, adding, “With this plea deal, the expectations for a spot Bitcoin ETF might have increased to 100% as the industry will be forced to follow the rules that TradFi firms must follow.”

    The firm believes that this “whitewashing” of the industry will not only enhance Bitcoin’s adoption by institutional players but also position it as a safe-haven asset in investment portfolios. “More importantly, this industry’s whitewashing will strengthen the Bitcoin adoption case for institutional players and will likely become a safe-haven asset in investors’ portfolios,” Matrixport predicts.

    The note also touches on the anticipated sale of the FTX exchange and its potential relaunch under a US securities law-compliant management team by Q3 2024. Matrixport speculates that this could lead to significant inflows, estimated between $24-50 billion, into any US-listed Bitcoin ETF. They also note the increasing trend of crypto firms making markets on CME-listed crypto derivatives, indicating a shift from retail-focused, unregulated exchanges to those that are fully regulated and cater to institutional clients.

    ‘Dark Cloud Has Been Removed’ As ETF Makes Progress

    Analysts and industry experts have echoed Matrixport’s sentiments. Will Clemente, a noted analyst, stated, “With resolution on Binance, just a matter of weeks until Bitcoin ETF approval now.” Tony “The Bull” Severino, head of research at NewsBTC, commented, “A dark cloud has just been removed from the crypto market.” Conversely, Scott Johnsson, a finance lawyer at Davis Polk, offered a more cautious view, suggesting that “It’s far more likely an ETF decision led the Binance resolution than the other way around imo. And I’m not convinced either is that likely.”

    Remarkably, there has been some movement in the spot ETF approval process in the last few days. Ark Invest has kicked off the third round of amendments to the S-1 filings, Grayscale had a meeting with the US Securities and Exchange Commission yesterday regarding its “uplisting.”

    At press time, BTC traded at $36,483.

    BTC reclaims the trend channel, 4-hour chart | Source: BTCUSD on TradingView.com

    Featured image from Shutterstock, chart from TradingView.com

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    Jake Simmons

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  • Crypto Current Climb: JPMorgan Suggests Rally May Be Reaching Its Peak

    Crypto Current Climb: JPMorgan Suggests Rally May Be Reaching Its Peak

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    JPMorgan analysts have cast a skeptical eye over the recent crypto rally, indicating it may be built on sand rather than solid ground. Their latest report conveys a guarded stance, suggesting that the market’s exuberance may be outpacing the underlying fundamentals.

    As the market’s enthusiasm swells, fueled by pivotal developments such as the US Securities and Exchange Commission’s (SEC) potential green light of the spot Bitcoin exchange-traded fund (ETF), these financial experts are urging caution, advocating a closer examination of the elements at play.

    A Closer Look At ETF Approval And Regulatory Battles

    Within the crypto sphere, JPMorgan analysts disclosed that two significant events have captured investor interest and driven prices upward.

    These events include anticipating a US-approved spot Bitcoin ETF, which has ignited hopes of new capital inflows. At the same time, recent legal tussles involving the SEC have raised expectations for a more permissive regulatory environment.

    However, the JPMorgan team, led by analyst Nikolaos Panigirtzoglou, presents a contrarian view, deconstructing these drivers and their probable impact on the market. They argue that an ETF approval would usher in fresh capital, which might be misleading.

    The analysts propose that rather than attracting new investment; the approval could redirect existing funds from current Bitcoin investment products into the new ETFs. The JPMorgan team noted:

    First, instead of fresh capital entering the crypto industry to be invested in the newly-approved ETFs, we see as a more likely scenario existing capital shifting from existing bitcoin products such as the Grayscale bitcoin trust, bitcoin futures ETFs and publicly listed bitcoin mining companies, into the newly-approved spot bitcoin ETFs.

    This shift, they assert, would not necessarily expand the market’s capital base. JPMorgan’s team points to the tepid response to similar products in Canada and Europe as evidence, suggesting that a US spot Bitcoin ETF might encounter the same lukewarm reception.

    Legal victories against the SEC in high-profile cases like Ripple and Grayscale are also interpreted as potential precursors to a regulatory softening. Yet, the analysts remain unconvinced, citing the lingering aftereffects of the FTX scandal and the inherent risks of an under-regulated market.

    They further disclosed that these factors will likely keep the regulatory tightening trend intact, with little room for significant easing.

    Bitcoin Halving: A Pre-Priced Crypto Event?

    The report delves into the much-discussed Bitcoin halving, which traditionally stokes bullish forecasts. However, JPMorgan’s analysts believe the market has already factored in the halving’s supply-squeeze implications. They noted:

    This argument seems unconvincing as the Bitcoin halving event and its effect are predictable and in our opinion are well factored into Bitcoin price.

    They calculate that based on current data, the production cost of Bitcoin post-halving should double, particularly from the current $ $21,000 to $43,000.

    Their analysis concludes with a sobering outlook, anticipating a potential “buy the rumor, sell the fact” scenario post-ETF approval. Such a dynamic could see prices climb on anticipation and plummet once the event materializes, a pattern familiar to seasoned market observers.

    Echoing similar sentiments, financial commentator Peter Schiff has cast doubt on the longevity of Bitcoin’s price surges driven by ETF speculations.

    Schiff warns that post-approval, Bitcoin might face a shortage of positive triggers, potentially culminating in a market sell-off as the ‘buy the rumor, sell the news’ phenomenon unfolds.

    Meanwhile, Bitcoin has seen quite a significant move in the past few hours. The asset has now marked a new high for 2023, surging above $37,000, up by nearly 10% in the past day.

    BTC’s price is moving sideways on the 4-hour chart. Source: BTC/USDT on TradingView.com

    Featured image from Unsplash, Chart from TardingView

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    Samuel Edyme

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  • Galaxy Digital and Invesco Bitcoin Spot ETF Join BlackRock On The DTCC

    Galaxy Digital and Invesco Bitcoin Spot ETF Join BlackRock On The DTCC

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    In a recent development, another proposed Spot Bitcoin ETF has been listed on the Depository Trust and Clearing Corporation’s (DTCC) website, becoming the second proposed Spot Bitcoin ETF to appear on the corporation’s website. 

    BTCO Joins IBTC On DTCC Website

    The Invesco Galaxy Bitcoin ETF under the ticker ‘BTCO’ recently appeared on the DTCC website, joining BlackRock’s spot Bitcoin ETF, which goes under the ticker ‘IBTC’ as uncertainty around a possible approval of these funds continues to heighten. 

    Source: DTCC website

    Many had speculated an approval was imminent when BlackRock’s IBTC was earlier listed. However, the optimism has sort of cooled off following a recent revelation by a spokesperson for the financial services company. The representative clarified that the listing of these ETFs was simply “Standard Practice” and that it doesn’t indicate any potential approval by the SEC. 

    An ETF expert had also weighed in and stated that DTCC’s listing didn’t mean anything in the grand scheme of things regarding a possible approval of Bitcoin ETFs by the United States Securities and Exchange Commission (SEC). Going by this, the DTCC listing only suggests that these asset managers are preparing just in case they get approved by the SEC. 

    Such preparations also include asset managers BlackRock and VanEck recently revealing their plans to begin seeding for their respective funds. While such a move doesn’t guarantee that the SEC is likely to approve these funds anytime soon, it, however, shows the optimism of these firms that their Spot Bitcoin ETF will launch sooner or later. 

    Valkyrie Joins The Spot Bitcoin ETF Amendment Train

    In a post shared on his X (formerly Twitter) platform, Bloomberg analyst James Seyffart noted that the asset management firm Valkyrie had joined the “prospectus amendment train” with the latest filing of their revised Spot Bitcoin ETF prospectus. Valkyrie joins the likes of ARK Invest, BlackRock, Fidelity, and Bitwise, who have also filed amendments to their prospectus. 

    Seyffart happens to be one of those who believe that these amendments could mean something. ARK Invest was the first asset manager to amend its prospectus, which led Seyffart and fellow Bloomberg analyst Eric Balchunas to predict that the US Securities and Exchange Commission (SEC) could approve a fund as early as next year.

    Meanwhile, it is worth mentioning that the SEC has so far not said anything regarding Grayscale’s application despite the Commission opting not to file an appeal. But that could change soon as ETF enthusiast and prominent financial lawyer Scott Johnsson said that the Commission is set to have a closed meeting on November 2; its first since the Grayscale deadline expired, and one of the agenda for the meeting includes resolving litigation claims. 

    Bitcoin price chart from Tradingview.com (Spot Bitcoin ETF)

    BTC price hovering above $34,400 | Source: BTCUSD on Tradingview.com

    Featured image from iStock, chart from Tradingview.com

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    Scott Matherson

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  • BTC ETF speculation sparks meme coin market surge

    BTC ETF speculation sparks meme coin market surge

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    This past week saw a diverse set of tokens participating in an upswing, and the meme coin Pepe (PEPE) was the star of the show.

    In the wake of the recent crypto market turbulence, spurred by speculation about Bitcoin spot ETF acceptance, PEPE has made waves with its announcement of burning more than $5.5 million worth of tokens. 

    This move led to a significant 30% price hike in a single day, propelling PEPE to its peak in two months. The growth, set against the backdrop of potential Bitcoin spot ETF approval, marks a significant increase in PEPE’s value and indicates a potential rebound in the altcoin sector.

    According to crypto market monitor CoinGecko, over the previous week, the price of PEPE surged by a remarkable 56.5%. However, its current price of $0.00000115 signifies a 3.5% decrease as of now.

    PEPE 7-day price chart | Source: CoinGecko

    The triumph of PEPE mirrors the burgeoning influence of meme-based cryptocurrencies, which largely thrive on internet communities and social media interaction. 

    The buzz around these coins is fueled by several factors like trending social movements, speculative trades, and the lure of quick, albeit uncertain, returns on investment.

    The past week has reignited the excitement in the crypto market, with a diverse mix of coins leading the way for gains. Meme coins like Floki Inu (FLOKI) and Pepe capitalized on hype and speculation, with the onset of crypto spring attracting retail investors back to the market. 

    Meanwhile, platforms like the Mina protocol (MINA) and Injective (INJ), and THORChain scored gains due to project advancements and adoption milestones, and gaming tokens like Gala continued to surge as blockchain-based games continue to draw attention.

    Floki Inu saw an 85% increase. As a whole, the top 10 crypto gainers of the week all experienced double-figure returns, outdoing the larger market.

    MINA, one of the few larger market cap cryptos, enjoyed a 60% jump to $0.61986, bolstered by an uptick in development activity and increased adoption.

    Injective, a decentralized exchange protocol created for decentralized finance applications, experienced a 56.02% rally over the past week, reaching $13.355. Chainlink (LINK), the oracle network, saw a 44.66% increase this week, hitting an impressive $11.04.

    It’s worth noting that the extreme price volatility and speculative nature of meme coins can lead to unforeseen price swings and potential risk for investors.


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    Julius Mutunkei

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  • Bitcoin Resumes Rally After Brief Hiatus, Here’s What Happened

    Bitcoin Resumes Rally After Brief Hiatus, Here’s What Happened

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    Bitcoin saw a brief stall in its rally which triggered a decline back down to $33,700. This decline, seemingly out of nowhere, may have not been random given some developments in the crypto space. As the rally resumes once more, here’s a look at these developments.

    BlackRock Spot Bitcoin ETF Listing Taken Down

    The BlackRock Spot Bitcoin ETF was first listed on the Depository Trust and Clearing Corporation’s (DTCC) on Tuesday, triggering the first wave of the Bitcoin rally. However, in the same day, crypto community members noticed that the listing on DTCC had been mysteriously taken down.

    The listing would remain off the site for several hours while community members speculated on what could be the cause of this. Around this time, the price of Bitcoin began to fall, seemingly driven by the fact that investors saw the removal of the BlackRock listing as a sign that a Spot Bitcoin ETF wasn’t coming as soon as they expected.

    Hours later, Bloomberg Analyst Joe Light revealed that the listing was back up on the site. Apparently, the initial listing and the subsequent ones had carried one small change in detail which was a change in the Create/Redeem section from a “Y” to a “N.”

    Another Bloomberg analyst James Seyffart explained that this likely meant that it was to indicate whether the ETF listing was open to creations/redemptions. When Light asked if this change could point out a launch without using that attribute, to which Seyffart said:

    “I personally don’t think this means all that much if I’m being honest. Think it indicates Blackrock is getting everything ready to launch if and when they get an SEC approval. And that the N just means it’s not open for create redeem because it’s not live yet.”

    BTC recovers to $34,400 | Source: BTCUSD on Tradingview.com

    BTC Price Bounces Back

    The return of the BlackRock Spot Bitcoin ETF on the DTCC sparked enthusiasm across the space once more than it did before. The price of Bitcoin quickly started to recover and by Wednesday morning, was back above the $34,000 mark once more.

    These events outline the importance of a Spot ETF and how it is the major driver behind the most recent price rally. So an approval or a rejection would both have a major impact on the digital asset’s price. For one, an approval would likely see Bitcoin clear above $40,000. However, a rejection would be detrimental to the rally, and will probably send it back below $30,000.

    Presently, Bitcoin is maintaining bullish momentum above $34,100. But it is seeing small losses of 0.99% on the 24-hour chart, and its daily trading volume is down 34.58%.

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    Best Owie

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  • Bitcoin Spot ETF: Crypto Research Firm Reveals What Will Happen In The First Three Years | Bitcoinist.com

    Bitcoin Spot ETF: Crypto Research Firm Reveals What Will Happen In The First Three Years | Bitcoinist.com

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    The potential approval of a Spot Bitcoin ETF by the US Securities and Exchange Commission (SEC) is expected to have significant effects on Bitcoin and the Spot Bitcoin ETF market. Addressing what investors can expect, the crypto research firm Galaxy Digital recently provided insights as to what could happen in the first three years upon the launch of this fund. 

    What To Expect In The First Three Years

    In a research paper released on October 24, Galaxy Digital’s research associate Charles Yu provided a vivid illustration of the heights a Spot Bitcoin ETF could attain in terms of market size and inflows in the first three years. 

    Source: Galaxy Research

    As to market size, Yu made his predictions on the addressable market size of a US Bitcoin ETF based on how they expect various wealth channels to adopt the fund. According to him, RIA (Registered Investment Advisor) will ramp up starting at 50% in the first year and increasing to 100% in the third year. 

    Meanwhile, broker-dealers and bank channels will ramp up at a slower pace, starting at 25% and increasing to 75% by the third year. If their assumption comes true, they estimate the market size to hit $14 trillion in the first year, $26 trillion in the second, and $39 trillion in the third year. 

    The firm’s estimates of inflows into the Bitcoin ETFs are based on their market size estimates. Going by this, they predict that these funds could see $14 billion of inflows in the first year, $27 billion by the second year, and up to $39 billion by the third year after launch.  

    Yu noted that factors such as a potential delay or denial of the pending Spot Bitcoin ETFs could affect their analysis. Other factors like poor price performance could also cause a low adoption rate, which they believe will potentially affect their estimates.

    Bitcoin price chart from Tradingview.com (Spot Bitcoin ETF)

    BTC price retraces to $33,900 | Source: BTCUSD on Tradingview.com 

    Potential Impact On Bitcoin’s Price

    Yu also provided insight into the effect that these Spot Bitcoin ETFs could have on BTC’s price. They predict that Bitcoin’s price could see a 74.1% increase in the first year of these funds launching. He made this estimate using the expected amount of inflows ($14 trillion), which is expected to come into these funds in the first year while making comparisons to Gold ETFs. 

    Bitcoin spot ETF
Source: Galaxy Research

    Specifically, they project that Bitcoin’s price could see a 6.2% increase in the first month of these funds’ launch as they estimate an adjusted inflow of over $10 billion in the first month. This price increase in the first month is expected to keep ramping down to a 3.7% price impact in the last month of the first year of launch, all of which will cumulatively add up to the 74.1% increase. 

    Featured image from The Conversation, chart from Tradingview.com

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    Scott Matherson

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  • Lawyer suggests Bitcoin ETF approval expected by end of the year

    Lawyer suggests Bitcoin ETF approval expected by end of the year

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    In response to Commissioner Hester Peirce’s expression of confusion about the rationale behind the SEC’s failure to greenlight a Bitcoin ETF, John E Deaton, a lawyer at Crypto-Law US, shares what this means for the public.

    One of the outcomes is the possibility that approval would occur before the end of the year, or at the latest, by the close of the first quarter of 2024.

    An important factor

    In her response, Commissioner Hester Peirce expressed uncertainty regarding the SEC’s timeline for approving a spot BTC fund. Peirce, a staunch advocate for the spot Bitcoin ETF approval, highlighted that while the ongoing court case remains a significant influencing factor, she finds it perplexing to predict her colleagues’ perspective on the matter. 

    Peirce commented, “The logic for why we haven’t [approved a Bitcoin ETF] has always mystified me. The court case obviously is an important factor in the landscape, but I can’t guess my colleague’s approach to this topic.”

    In this unfolding scenario, Deaton proposes there are two distinct possibilities to consider: Firstly, the SEC may have shifted its stance and is on the brink of approving the spot BTC ETF, either by year-end or certainly within the initial quarter of 2024, signifying a significant shift in their position.

    Alternatively, Deaton suggests the SEC’s ongoing discussions could indicate a strategic move to gather additional information, possibly with the intention of devising a fresh rationale for denying the spot ETF, creating what might be one of the most remarkable head fakes or ‘rug pulls’ in SEC history.

    Several applications being actively scrutinized

    In an Oct. 19 post, the SEC Chairman Gary Gensler has affirmed that the regulatory body is actively scrutinizing several applications for Bitcoin spot ETFs. 

    Although Gensler alluded to the existence of eight or nine such applications at this time, he underscored the nature of the review process, refraining from providing explicit details about their status.


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    Sarah Jansen

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  • Bitcoin Critic Kicks Against Spot ETF Hype, Predicts Low Institutional Investment

    Bitcoin Critic Kicks Against Spot ETF Hype, Predicts Low Institutional Investment

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    The price of Bitcoin (BTC) moved above $30,000 in the last few hours, according to data from CoinMarketCap. However, as with multiple instances in the past week, the crypto market leader was unable to sustain its bullish momentum, dipping by 0.6% in the last hour.

    As the BTC market continues its battle against the $30,000 resistance zone, Bitcoin critic and gold advocate Peter Schiff has weighed in on the ongoing discourse surrounding the potential effects of the approval of a spot Bitcoin exchange-traded fund (ETF).

    Bitcoin ETF Will Not Boost Institutional Investment, Schiff Says

    In a post on X on Saturday, Peter Schiff stated that contrary to popular beliefs, the availability of more Bitcoin ETFs will likely not result in a higher level of institutional investment in the world’s largest crypto asset.

    Schiff’s heavy take comes at a time in which several asset managers are currently trying to gain approval to launch the first-ever spot Bitcoin ETF in the US. 

    Since the onset of this ETF saga in June, many market analysts have lauded the potential positive effects a spot Bitcoin ETF could produce, with some predicting BTC’s price to trade above $100,000.

    According to a recent report by blockchain analytics firm CryptoQuant, the approval of a spot market ETF could result in BTC attaining a market cap of $900 billion and a total crypto market cap growth of $1 trillion. 

    However, Peter Schiff presents an opposing theory to this debate as he believes investment brokers will likely not be purchasing such funds for their clients due to certain “liability.” 

    In this context, “liability” likely refers to the risk factors attached to crypto investments, which include the crypto market volatility and lack of clear regulations in the US, among others.

    Peter Schiff believes that with such existing “liability,” investment professionals will not promote or recommend a Bitcoin ETF to their clients. 

    In the best-case scenario, he states that investment in Bitcoin ETFs – including a spot Bitcoin ETF – will likely occur through unsolicited buy orders whereby a client makes a specific request to purchase such funds. 

    The ETF Saga Continues

    In other news, the Bitcoin ETF saga has garnered more attention in recent weeks as more bullish predictions continue to roll in.

    Most recently, Paul Grewal, Chief Legal Officer at Coinbase, stated that the American largest exchange is confident the SEC will definitely greenlight a spot Bitcoin ETF following the commission’s recent court loss against Grayscale.

    Meanwhile, certain asset managers, including BlackRock and Ark Invest, have reviewed their ETF applications, indicating signs of an ongoing dialogue with the SEC, a move which typically precedes an approval by the securities regulator.

    For now, it remains unknown if a spot Bitcoin ETF will eventually grace the US markets, but analysts have penned down January 10 as the expected date of approval.

    Thereafter, Peter Schiff’s theory can be put to the test. However, it is worth stating that BTC did gain by 7% on October 16 following the fake news on the approval of BlackRock iShares ETF.

    At the time of writing, BTC trades at $29,890.35 with a 0.6%  gain in the last day. Meanwhile, the token’s daily trading volume is down by 12.67% and valued at $13.35 billion

    BTC trading at $29,885.27 on the hourly chart | Source: BTCUSDT chart on Tradingview.com

    Featured image from American Enterprise Institute, chart from Tradingview

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    Semilore Faleti

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  • Coinbase Exec Uses The Law To Back Why SEC Should Approve A Spot Bitcoin ETF | Bitcoinist.com

    Coinbase Exec Uses The Law To Back Why SEC Should Approve A Spot Bitcoin ETF | Bitcoinist.com

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    Coinbase’s Chief Legal Officer, Paul Grewal has recently used the law to back the approval of a Spot Bitcoin Exchange Traded Fund (ETF) by the United States Securities and Exchange Commission (SEC), highlighting that the US regulator should fulfill its responsibilities.

    Coinbase CLO Optimism On The Approval Of A Spot BTC ETF

    In an interview on Friday, with CNBC’s Arjun Kharpal, Paul expressed his optimism about the approval of Bitcoin ETF applications by the SEC. The Coinbase CLO said that he is quite confident that the SEC will soon approve a spot Bitcoin ETF, backing his belief under the law.

    “I’m quite hopeful that these [ETF] applications will be granted, if only because they should be granted under the law,” Paul stated.

    Following the interview, Paul highlighted his beliefs in the early success of approval, noting that the firms that have stepped forward with well-structured ETF proposals for these products and services are crucial players in the financial service industry.

    I think that the firms that have stepped forward with robust proposals for these products and services are among some of the biggest blue chips in financial services. So that, I think, suggests that we will see progress there in short order.

    However, Paul did not give a time frame as to when the approval will happen since the final decision about the approval ultimately lies with the SEC. However, he is still confident that the US regulator is likely to approve a Bitcoin ETF in a short period due to recent developments.

    Paul further backed his optimism following the SEC’s recent court setback when a judge from the US Court of Appeals stated that the US regulator had no grounds to deny Grayscale’s approval to convert its Grayscale Bitcoin (BTC) into a spot Bitcoin ETF, calling the SEC’s decision an arbitrary move.

    “I think that, after the U.S. Court of Appeals made clear that the SEC could not reject these applications on an arbitrary or capricious basis, we’re going to see the commission fulfill its responsibilities. I’m quite confident of that,” Paul stated.

    BTC breaks above $29,800 | Source: BTCUSD on Tradingview.com

    In addition, Paul also highlighted the SEC’s failure to file an appeal on the ruling indicating a potential approval of a spot BTC ETF soon within the stipulated timespan that was given to them by the court.

    If an approval of a Spot ETF is made, BTC could experience a major rally. A Bitcoin ETF serves as a means for investors to invest in BTC without having to make a direct purchase of the digital asset from an exchange. 

    One of the major cryptocurrency exchanges that will benefit a lot from any Bitcoin ETF approval is Coinbase. This is because the crypto exchange’s common stock is held in portfolios tailored to give investors exposure to cryptocurrencies.

    JPMorgan On A Spot Bitcoin ETF Approval

    Analysts from JPMorgan, have also expressed their optimism on a Bitcoin ETF approval, that the ETF product could be available to the public by this Christmas.

    Due to recent developments following the approval of a Spot Bitcoin ETF, the financial giant believes that there is a high chance that an ETF could gain approval before January 10, 2024.

    In addition, analysts from Bloomberg also believe that there is a 90% chance that a Bitcoin ETF will be approved next year.

    Featured image from Forkast News, chart from Tradingview.com

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    Scott Matherson

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  • Coinbase Bullish: Bitcoin ETF Approval Expected After SEC’s Defeat

    Coinbase Bullish: Bitcoin ETF Approval Expected After SEC’s Defeat

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    In a recent CNBC report, Coinbase, the largest cryptocurrency exchange in the United States, expressed confidence in the approval of a US-based Bitcoin (BTC)  exchange-traded fund (ETF) by the Securities and Exchange Commission (SEC). 

    Paul Grewal, Coinbase’s Chief Legal Officer, highlighted that the SEC’s recent court setback in the case of Grayscale’s proposed Bitcoin ETF has paved the way for a potential approval in the coming months.

    Coinbase Eyes Bitcoin ETF Approval 

    Grewal emphasized that Coinbase is hopeful about the approval of ETF applications due to their compliance with existing laws governing financial services. Grewal noted that prominent financial institutions have submitted robust proposals, indicating progress in the regulatory landscape.

    The recent court ruling against the SEC stated that the regulator lacked a valid basis to deny Grayscale’s request to convert its GBTC Bitcoin fund into an ETF. 

    The SEC chose not to appeal the ruling within the specified deadline, further increasing the likelihood of a BTC-related ETF gaining approval shortly.

    However, Grewal acknowledged that the ultimate decision rests with the SEC, and he refrained from providing a specific timeline for the approval process. 

    Nevertheless, Grewal expressed confidence in the SEC’s obligation to fulfill its responsibilities, particularly in light of the court’s decision and the requirement to apply the law impartially.

    The introduction of a Bitcoin ETF would offer investors an alternative means to gain exposure to BTC without directly purchasing the cryptocurrency from an exchange. 

    This could be particularly attractive to retail investors seeking Bitcoin exposure without the complexities of owning the underlying asset.

    Per the report, Coinbase, being the largest crypto exchange in the United States, stands to benefit from the potential approval of a BTC ETF. The company’s common stock is held in portfolios designed to provide investors with crypto exposure.

    Legal Troubles Mount For Grayscale’s Parent Company

    While the recent court ruling has bolstered prospects for a BTC ETF, it is important to note that Grayscale’s bid to convert GBTC into an ETF is not without its challenges. 

    Digital Currency Group (DCG), Grayscale’s parent company, along with crypto exchange Gemini and DCG subsidiary Genesis, face a lawsuit from the New York Attorney General, accusing them of defrauding investors of over $1 billion.

    Despite the ongoing legal issues, Grewal remained positive about the approval of additional Bitcoin ETFs in the future as the SEC adheres to the law and evaluates pending applications neutrally.

    The report also touched upon the recent performance of BTC, which has experienced a resurgence in 2023. With a 72% year-to-date increase, Bitcoin has rebounded from significant declines in 2022. 

    BTC’s 3% uptrend on the daily chart over the past 24 hours. Source: BTCUSDT on TradingView.com

    Factors such as anticipation surrounding the upcoming BTC halving event and investor reactions to the Federal Reserve’s potential interest rate policy changes have contributed to increased demand for the digital currency.

    Ultimately while trading volumes have declined recently, attributed partly to retail investors’ reduced engagement in response to low volatility and industry players’ challenges, Grewal expressed optimism that various developments, including criminal trials and rigorous regulatory actions, will restore investor and consumer interest in the crypto market.

    As the landscape for Bitcoin ETFs evolves, market participants will closely monitor the SEC’s stance and any potential regulatory developments that shape the future of cryptocurrency investment products.

    Featured image from Shutterstock, chart from TradingView.com 

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    Ronaldo Marquez

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