How a US spot Bitcoin ETF approval will forever change the crypto space
By Paul Reid
08 January 2024
The US Securities and Exchange Commission (SEC), along with the investment titans BlackRock, Fidelity Investments, and Vanguard Group are in the final throes of a potentially groundbreaking cryptocurrency decision. The stage is set for what could be the biggest week in the history of Bitcoin trading.
Will the SEC approve a Bitcoin ETF?
Since 2013, multiple asset managers have knocked on the SEC's doors, seeking permission to launch spot bitcoin ETFs. Their efforts have been met with resistance, the SEC steadfast in its concerns over potential market manipulation. But the winds of change are blowing, and the current atmosphere is charged with a mix of hope and cautious optimism.
After years of aspiration and relentless pursuit by investment management firms and stock exchanges, it’s finally showtime. Discussions, held on 5 January, were shrouded in confidentiality, a testament to the gravity of the matter at hand, and we are just days away from confirmation.
In a plot twist, last week, asset managers were racing against the clock to amend their filings, disclosing fees and identities of market-makers for their ETFs, and the deadline for disclosure has come and gone. Were the amendments delivered on time?
The SEC is playing its cards close to its chest, maintaining its silence on individual filings. However, whispers in the corridors suggest that the Ark/21Shares ETF, first in line, might just get the green light by January 10 – a date that could potentially be etched in the annals of Bitcoin trading history.
Why is an ETF such a big deal?
An ETF will catapult Bitcoin into the mainstream investment arena. The hesitation of hedge funds to dive into Bitcoin is well-known, mainly due to regulatory uncertainties. But with an SEC-approved spot Bitcoin ETF, the floodgates are set to open.
Institutional investors will have the regulated pathway they've been waiting for to enter the crypto world. This influx of institutional money could drive demand and prices to new heights, creating unprecedented opportunities for savvy traders of all levels.
The green light for a spot Bitcoin ETF is not just about broader access; it's a monumental nod of legitimacy from the SEC to the entire cryptocurrency industry. This approval is a clear signal that Bitcoin isn't just a passing trend – it's a recognized, viable investment with potential so immense that even the most stringent regulators are taking note.
This is the moment the crypto world has been waiting for – a step towards mainstream acceptance and regulatory recognition.
If the SEC approves a Bitcoin ETF on 10 January, be ready for some price volatility as opportunistic hedge funds jump in and out of the market.
Non-SEC-approved ETFs such as BITO caused rapid rallies back in 2021, but speculators were quick to take profit from the spike, and the prices plummeted shortly after, so be sure to set Stop Loss and Take Profit.
And all this is just days away. If you’ve already got an active trading account, open up the BTC chart on your browser and see what Bitcoin’s price is right now. If you’d prefer to wait until the volatility has died down, you can try trading Bitcoin 100% risk-free with the Exness demo account. Worthy of mention is a unique trading mechanism to Exness, a buffer that can protect traders from stop out misery, which is ideal for the coming BTC volatility.
The future of trading is about to get a whole lot more interesting, and Exness traders are getting a front-row seat to crypto history.
This is not investment advice. Past performance is not an indication of future results. Your capital is at risk, please trade responsibly.
Paul Reid is a financial journalist dedicated to uncovering hidden fundamental connections that can give traders an advantage. Focusing primarily on the stock market, Paul's instincts for identifying major company shifts is well established from following the financial markets for over a decade.