- Industry experts dismiss the recent $100 billion market dip in Bitcoin, remaining confident in the imminent approval of spot Bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC).
- The crypto community remains optimistic, with insiders attributing the market turmoil to rumors surrounding ETFs, anticipating a positive SEC verdict within the coming weeks.
In the fast-paced world of cryptocurrency, the recent tumble in Bitcoin’s value, shedding around $100 billion in just 24 hours, has left many investors on edge. The crash, occurring on January 3, saw Bitcoin plummet by 8%, hitting a low of approximately $42,000 before making a swift recovery to reclaim the $43,000 mark on January 4.
Speculation abounds that this downturn may be linked to reports and rumors surrounding the potential approval of spot Bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC). Despite the market jitters, seasoned industry experts and analysts remain resolute in their belief that approval is imminent, dismissing the recent dip as mere market noise.
Crypto influencer Lark Davis downplayed the significance of the market reaction, stating, “Bitcoin dumped over a rumor started by Matrixport… BUT, chances are still overwhelmingly in favor of an approval.” His sentiment reflects the prevailing optimism within the industry.
January 10 marks the final deadline for the Ark 21Shares spot BTC ETF application. However, insiders widely anticipate the SEC to batch approve as many as 12 ETFs in the queue to prevent anyone from gaining a first-mover advantage.
Tether and VanEck strategist Gabor Gurbacs expressed frustration with market reactions driven by speculative predictions, remarking, “We are at the phase where markets dump based on some charlatan talking about Bitcoin ETF predictions. That’s just dumb. Most have learned nothing.”
Bloomberg senior ETF analyst Eric Balchunas echoed the positive sentiment, emphasizing that all signs, including ongoing meetings and filing amendments, suggest SEC approvals are on the horizon. He questioned the authenticity of reports suggesting rejection and stated, “We have heard nothing to indicate anything but approval.”
Sources close to the SEC proceedings suggest that approval notifications could commence on Friday, with trading potentially starting as early as next week, according to Fox Business. Legal expert Jake Chervinsky expressed confidence, asserting that after a decade,
“we’re finally on the verge of having spot Bitcoin ETFs approved in the USA.”
In a related development, cryptocurrency asset manager Grayscale is reportedly in talks with major banks, including JPMorgan and Goldman Sachs, regarding its proposed Bitcoin ETF. Both institutions are being considered as “authorized participants,” entities with the authority to create and redeem shares of the fund, according to anonymous sources cited by Bloomberg.
Despite recent market turbulence, industry experts maintain their confidence in the imminent approval of Bitcoin ETFs, showcasing their resilience and belief in the long-term potential of the cryptocurrency market.
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