Expectations for Bitcoin spot ETF approval continue to grow as the deadline for the SEC to announce a decision approaches.
The cryptocurrency market is expecting a ruling from the US Securities and Exchange Commission (SEC) on Bitcoin ETFs in the next two days.
Expectations that the SEC will give a positive response to applications for Bitcoin-based investment funds, which have been waiting for months for possible approval, are on the rise, favoring the price of the cryptocurrency in the market.
Bitcoin has risen by almost 24% over the past 9 hours, reaching a price of $47.200 per BTC, according to data from the CoinMarketCap platform.
Source: CoinMarketCap
The final stretch towards Bitcoin spot ETFs
Bitcoin soared on Monday, boosted by the final stretch in the race to spot ETFs.
As Bit2Me News has reported, January 10 is key, since it is the SEC's deadline to decide on the approval or rejection of the ARK 21Shares Bitcoin ETF (ARKB), the spot ETF proposed by the companies Ark Invest and 21Shares. This ETF will directly track the price of BTC through the S&P Bitcoin Index and will be traded through the Chicago Board Options Exchange (CBOE), if approved by the SEC.
On the other hand, asset managers seeking SEC approval to launch a spot ETF also started a fierce fee war on Monday, seeking to attract the interest of the largest number of investors and conquer this growing market. In the latest updates to their spot ETF filings, managers adjusted their commission rates to make them more attractive to investors. Tuur Demeester, editor-in-chief of Adamant Research and a Bitcoin analyst, said that fund managers are likely hoping to offset the low fees of their ETFs in anticipation of massive inflows from institutional flows.
Meanwhile, Cathie Wood, founder, CEO and CIO of Ark Invest, and several other experts, such as Eric Balchunas of Bloomberg Intelligence, predict that the SEC will approve several Bitcoin ETFs before January 10, in order to avoid giving the competitive advantage in the market to a single company.
Wood believes the SEC is primed for massive approval and that the Bitcoin ETF will be a catalyst to accelerate mass adoption of the cryptocurrency at the institutional level.
An epic year for Bitcoin and cryptocurrencies
2024 is off to a good start for Bitcoin and the cryptocurrency industry, with many experts pointing to this being an epic year for the emerging new digital asset class.
Bitcoin's (BTC) recent market price hit a new 2-year high for the cryptocurrency, as the last time Bitcoin was trading above the $47.000 level was in December 2021.
Other cryptocurrencies, such as Ethereum, are also seeing significant growth since Monday, rising by more than 5%. Solana, Cardano and Avalanche, which are among the most capitalized cryptocurrencies on the market, are on the rise, rising between 10% and 16% over the past 24 hours.
Experts say the SEC will notify asset managers of its decision on Bitcoin ETFs this week, and many expect the funds to begin trading on US stock exchanges the following week. If true, demand for Bitcoin from institutions could increase significantly, which could continue to push the price of the cryptocurrency higher.
Wood said the probability of the SEC approving spot ETFs is very high and that he is quite optimistic about the price of Bitcoin this year as these investment vehicles will motivate investors to move their funds into the cryptocurrency.
Continue reading: Bitcoin ETFs begin operating fee battle
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