As January 2024 approaches, Matrixport Research is optimistic about Bitcoin’s trajectory, forecasting a potential surge beyond the $50,000 threshold. The firm assigns a 95% probability to the approval of Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) as a key catalyst for this bullish outlook.
While confidence in the approval of spot Bitcoin ETFs before the January 10, 2024, deadline is on the rise, the current market reflects this optimism with Bitcoin’s price reaching as high as $44,000. Behind the scenes, various ETF applicants are engaged in ongoing discussions with the SEC, navigating the regulatory landscape.
Matrixport’s prediction hinges on the SEC’s green light for ETFs, with BlackRock notably engaging in multiple meetings with the regulatory body, potentially paving the way for spot ETF approval. Additionally, Grayscale has recently held discussions with SEC officials regarding the potential transformation of the Grayscale Bitcoin Trust (GBTC) into a Bitcoin ETF. The dialogue focused on the proposed rule change for listing and trading shares of the Grayscale Bitcoin Trust (BTC).
These developments indicate a dynamic landscape as industry players actively collaborate with regulatory bodies, hinting at a transformative shift in the cryptocurrency market if Bitcoin ETFs secure regulatory approval in the coming months.
ETF Approval With a Twist?
Charles Gasparino, a journalist at Fox Business, has indicated a growing confidence among prospective firms that the Commission will favor Bitcoin ETF approval post-January 8, 2024. However, this potential approval may come with conditions aimed at preventing money laundering violations. Gasparino explained the unique aspect, stating, “Unlike normal ETFs, you can only purchase shares with cash; SEC is concerned about ETFs being used as a vehicle for money laundering.”
Analysts suggest that the regulatory agency faces a tight decision-making window between January 8 and 10 regarding the approval of ETF proposals, as reported by CoinGape. The outcome remains uncertain, raising questions about whether the agency will initially approve filings from a select few companies and subsequently extend approvals to others.
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Another possibility is that all ETF filers might receive approval simultaneously, with a uniform launch date for their respective ETFs. The coming days will reveal the regulatory approach and its implications for the cryptocurrency market.
