Analysts expect Spot Bitcoin ETF to support Bitcoin like an ETF.

2024-01-09 14:28:40

Analysts predict that The US approval of the Spot Bitcoin ETF will be a driving factor for Bitcoin to rebound further. This is similar to the approval of the first gold ETF in November 2004. This makes it more convenient for investors to invest in gold by simply purchasing ETFs without having to hold gold directly. and makes gold become one of the assets that investors choose to diversify their investments.

The launch of gold ETFs in 2004 resulted in a large number of orders entering the market. and caused the price of gold to surge from below $500/ounce to near $2,000/ounce in just 8 years.

Mr. Chris Weston, head of research at Pepperstone Group, said there is currently no indication that the Sell on Fact phenomenon will occur once the US Securities and Exchange Commission (SEC) approves it. Setting up a Spot Bitcoin ETF

In addition, Mr. Weston stated that Technical factors indicate that Bitcoin will rebound to as high as $51,000 before falling as investors take profits.

Bitcoin dropped today. After surpassing $47,000 for the first time since April 2022 This is driven by speculation that the SEC may approve the creation of a Spot Bitcoin ETF this week.

Bitcoin has now surged 173% in the past 12 months and is up 10% since the start of 2024, bucking the declines in the stock market and gold.

Data from Coinswitch indicates that Bitcoin’s rally has pushed the cryptocurrency market to more than $1.8 trillion.

Many companies have lowered trading fees for Spot Bitcoin ETFs to capture market share. Although there is currently no approval for the establishment of a Spot Bitcoin ETF,

Announcement of a reduction in trading fees for Spot Bitcoin ETFs of various companies. It is a sign of confidence that the SEC will approve the establishment of a Spot Bitcoin ETF soon.

Thirteen companies have filed Form S-1s expressing their intent to establish Spot Bitcoin ETFs with the SEC, including:

Grayscale Bitcoin Trust, Ark/21Shares Bitcoin Trust, Bitwise Bitcoin ETF Trust, BlackRock Bitcoin ETF Trust, VanEck Bitcoin Trust, WisdomTree Bitcoin Trust, Valkyrie Bitcoin Fund, Invesco Galaxy Bitcoin ETF, Fidelity Wise Origin Bitcoin Trust, Global X Bitcoin Trust, Hashdex Bitcoin ETF, Franklin Templeton Digital Holdings Trust และ Pando Asset Spot Bitcoin Trust

The ARK 21Shares Bitcoin ETF lowered its fees to 0.25% from 0.80%, while BlackRock’s fees are 0.30%, VanEck’s fees are 0.25%, and Grayscale’s fees are capped at 1.5%.

If the SEC approves the creation of a Spot Bitcoin ETF, it will give investors who purchase the fund the ability to invest in bitcoin without having to hold it directly. and will create interest among institutional investors After previously avoiding investing in Bitcoin This is due to concerns that Bitcoin is an asset that lacks regulatory control from regulators.

Companies interested in setting up a Spot Bitcoin ETF have a deadline of Jan. 8 for reviewing Form S-1 to file with the SEC, while the SEC has a deadline of tomorrow (Jan. 10). Jan.) in announcing the results of consideration of approval or disapproval of various forms of various companies. which has submitted a statement of intent to the SEC

Additionally, the SEC is required to approve or disapprove platform 19b-4 forms. who want to register to trade the Spot Bitcoin ETF within the next few days

The SEC will require approval of Forms S-1 and 19b-4 before the Spot Bitcoin ETF can be traded on the market.

SEC officials held a meeting on Jan. 3 with officials from the New York Stock Exchange, Nasdaq and Chicago Board Options Exchange, all three exchanges where ETFs are traded.

The meeting led to widespread speculation that the SEC would soon approve the creation of a Spot Bitcoin ETF.

Analysts are confident that the SEC will approve the establishment of a Spot Bitcoin ETF no later than January 10, 2024, which would be the first such approval in the United States.

Bitcoin has surged more than 150% in the past year, outperforming the US stock market, where the S&P 500 index rose just 24%.

Moreover, analysts expect that Bitcoin will continue its upward trend. There was a positive factor from the US Federal Reserve (Fed) sending a signal to cut interest rates this year. Including the Bitcoin Halving phenomenon, which is expected to occur between March and May 2024.

Standard Chartered Bank previously issued a report predicting that Bitcoin will hit $120,000 by the end of 2024.

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