© Reuters Bitcoin fans around the world are excited: the Spot Bitcoin ETF was born today.
InfoQuest – Bitcoin is falling today after rising in response to fake news that the US Securities and Exchange Commission (SEC) approved the creation of the Spot Bitcoin ETF before the SEC denied the news.
As of 5:59 PM local time, Bitcoin was down 2.35% to $45,567.50 in trading on Coinbase (NASDAQ:).
Bitcoin price rose to nearly $48,000 in the first session. The highest record since March 2022 before falling to 44,816.94 after the SEC confirmed it was fake news.
Bitcoin's volatile rise suggests that cryptocurrency investors are cheering the decision made by the Securities and Exchange Commission today, which will approve the creation of a bitcoin ETF, the first of its kind in the United States.
Analysts expect that US approval of the Spot Bitcoin ETF will be a driving factor for a further Bitcoin recovery. 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 the gold directly. It makes gold become one of the assets that investors choose to diversify their investments.
The launch of gold ETFs in 2004 brought a massive influx of orders into the market. It caused the price of gold to rise from less than $500 per ounce to nearly $2,000 per ounce in just 8 years.
Standard Chartered Bank released a report predicting that Bitcoin will reach $200,000 by 2025 if the SEC approves the Spot Bitcoin ETF.
Standard Chartered predicts approximately 50,000-100,000 million dollars will flow into Bitcoin this year. If approved, the Spot Bitcoin ETF will attract institutional investors to the cryptocurrency market.
Chris Weston, head of research at Pepperstone Group, said there is currently no indication that there will be a sell-off phenomenon once the SEC approves a bitcoin spot investment fund.
In addition, Mr. Weston stated that technical factors indicate that Bitcoin will rebound to a level of up to $51,000 before falling as investors take profits.
Bitcoin is now up 173% in the past 12 months and is up 10% since the start of 2024, bucking declines in the stock market and gold.
Data from Coinswitch indicates that Bitcoin's rise has pushed the cryptocurrency market past $1.8 trillion.
Many companies have reduced trading fees for Spot Bitcoin ETFs to capture market share. Although there is currently no approval for a Spot Bitcoin ETF,
Announcement of reduced trading fees for spot Bitcoin ETFs for various companies. It is a sign of confidence that the SEC will approve the creation of a Spot Bitcoin ETF soon.
Thirteen companies have filed Form S-1 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 ETF, Franklin Templeton Digital Holdings Trust and Pando Asset Spot Bitcoin Trust
The ARK 21Shares Bitcoin ETF reduced its fee to 0.25% from 0.80%, while BlackRock's fee is 0.30%, VanEck's fee is 0.25%, and Grayscale's fee is capped at 1.5%.
If the SEC approves the creation of the Spot Bitcoin ETF, it will give investors who purchase the fund the ability to invest in Bitcoin without having to hold it directly. It will create interest among institutional investors after previously avoiding investing in Bitcoin due to concerns that Bitcoin is an asset that lacks regulatory oversight from regulators.
The Securities and Exchange Commission has a deadline today (January 10) to announce the results of its approval of S-1 forms for companies. that have filed notices of intent with the SEC, and the SEC is scheduled to consider approving the platforms' Form 19b-4. The SEC will need to approve Forms S-1 and 19b-4 before the spot Bitcoin ETF can trade in the market.
SEC officials held a meeting on January 3 with officials from the New York Stock Exchange, Nasdaq and the Chicago 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 creation of the Spot Bitcoin ETF no later than January 10, which would be the first approval of its kind in the United States.
Bitcoin has risen more than 150% in the past year, outperforming the US stock market, where the S&P 500 is up just 24%.
Moreover, analysts expect Bitcoin to continue its upward trend. There was a positive factor from the US Federal Reserve sending a signal to cut interest rates this year. Including the Bitcoin halving, which is expected to occur between March and May 2024.
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