Bitcoin Booms As ETF Approval Imminent in the next few HOURS!
Gooooooooood Morning Lion’s I hope you’re all roaring into action and what a craze today’s crypto currency market is in as Bitcoin almost hit USD 48,000 before retreating and still looking quite healthy.
In a thrilling turn of events the crypto currency market is in a hyped position of excitement as the U.S. Securities and Exchange Commission (SEC) hustles to respond to the latest filings for Bitcoin exchange-traded funds (ETFs). With a Wednesday deadline looming the regulatory body's swift comments have sent shockwaves through the crypto community, triggering a massive surge in Bitcoin prices.
But investors are advised to tread with caution at these prices as there might be a possible price correction because miners have been hoarding parts of their Bitcoin earnings in anticipation of more market hype once the ETFs are approved and this could trigger some price drops.
The SEC's Swift Response
SEC officials wasted no time in responding to prospective issuers of Bitcoin ETFs providing comments just hours after the companies filed documents detailing fees for their proposed products.
This unexpected speed caught the attention of market observers with Bloomberg Intelligence analyst James Seyffart noting that such prompt responses are "borderline unheard of." The comments addressed minor details in the amended S-1 forms, and issuers are expected to file updated documents by Tuesday.
This is providing a small indication for people that the SEC is in deed looking to approve ETFs this month which has been a long held view for many in the sector despite negative news articles circulating earlier in the month and late last year.
Major players such as BlackRock, Grayscale and Fidelity, among others have expressed their intent to launch spot Bitcoin ETFs in the U.S. Their expected fees were disclosed in filings earlier this week, adding to the anticipation surrounding the regulatory approval. Despite the SEC's historical rejections of spot Bitcoin ETF applications dating back to 2013 recent amended filings and engagements with issuers have fuelled hopes for a breakthrough this time.
BlackRock said its fee will start at 0.20%, rising to 0.30% Fidelity is looking at charging .039
Market Reaction and Bitcoin Price Surge
The anticipation of a potential approval has ignited a frenzied rally in the crypto currency market, propelling Bitcoin to a two-year high. As of the latest update, Bitcoin has crossed the USD 47,000 mark before retreating to current price exhibiting a remarkable surge of over 7% in the last 24 hours. This surge, marking a 160% increase over the past year reflects the market's optimism regarding the approval of the first spot Bitcoin ETF in the U.S.
However, amid the excitement SEC Chair Gary Gensler has issued a sudden warning cautioning that crypto and Bitcoin companies may not be fully compliant with federal securities laws. In a recent post Gensler emphasised the potential lack of compliance depriving investors of crucial information and protections.
This cautionary tone from the SEC has added a layer of uncertainty to the market causing a slight market decline with Gensler warning against the fear of missing out (FOMO) and urging investors to exercise caution.
Market Expectations and Potential Correction
While the SEC has not explicitly signalled its stance on the latest round of Bitcoin ETF applications the increased engagement and responsiveness suggest a positive outcome. However, Gensler's warnings have prompted some to speculate on a potential market correction as investors may choose to sell the hype.
It wasn’t until the final week of December 2023 that saw Bitcoin miners sell but there is still a lot of Bitcoin being hoarded and as Miners await further price increases this could lead miners to dump Bitcoin for higher profits.
The historical volatility of crypto currencies coupled with regulatory uncertainties continues to provide a view of the importance of cautious optimism.
Get Ready For Uncharted Territory
As the crypto currency market experiences a surge in anticipation and prices following the SEC's rapid response to Bitcoin ETF filings investors are on the edge of their seats awaiting the regulator's decision.
The potential approval of spot Bitcoin ETFs could mark a significant milestone opening doors for traditional financial institutions and retail investors to engage with the world's oldest crypto currency. However, Gensler's warnings serve as a reminder to tread carefully emphasising the risks and uncertainties inherent in the crypto market.
Wednesday, January 10, 2024, is poised to be a pivotal day, with the crypto community eagerly awaiting the SEC's decision and the potential impact on the broader market.
Image sources provided supplemented by Canva Pro Subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services.
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