SEC Sends Final Notice as Bitcoin ETF Approval Nears

SEC Sends Final Notice as Bitcoin ETF Approval Nears
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Key Insights:

  • Bitcoin ETF approval nears on Jan 10, 2024.
  • SEC asks applicants to refile, BlackRock complies.
  • Approval could take Bitcoin prices above $47k in a few days.

The US Securities Exchange Commission has asked all Spot Bitcoin ETF applicants to make final changes before the approval deadline of January 10, 2024 approaches. The SEC has asked all of them to make the changes by the year end.

Since a couple of weeks BlackRock and SEC have been through intense discussions following which BlackRock modified and resubmitted its final application for its spot Bitcoin ETF named iShares Bitcoin ETF.

Meeting Between US SEC and Seven Bitcoin ETF Execs

It was reported that on Thursday, Dec 22, 2023, US government officials from the Securities and Exchanges Commission met some of the executives of seven Bitcoin ETFs and told a few of them to re-submit their applications with a little modifications. This comes after Gary Gensler hinted at change of stance for Bitcoin ETFs.

It was also reported that officials from Cboe, Ark Invest, 21 Shares, BlackRock and Grayscale were present in the meeting.

Cboe is the exchange which acts as a counterpart and has filed several Bitcoin ETFs in the names of its clients.

The SEC has a deadline of January 10, 2024 to decide upon the case of ArkInvest/21Shares Bitcoin ETF.

Fox Business reported that the deadlines were set at Dec 29, 2023 for the final resubmissions.

What if Bitcoin ETFs are Approved?

In the case of an ETF approval by Bitcoin, its price could easily cross the all time high of $69k. Further, it would open new opportunities for Bitcoin investors as small investors could easily subscribe to the ETF rather than buying, storing and safekeeping Bitcoin by themselves.

Further, considering gas fees, small investors would be able to get higher returns on Bitcoin once they invest through ETFs.

However, the majority demand would be still institutional. CNBC reports that if approved Bitcoin would be a part of at least 72% of portfolios of asset management companies as per a survey by Nasdaq in 2022.

#Note: The Nasdaq survey was taken during the initial phases of a bear market in April 2022.

Year End Predictions

At the time of writing this article, there were just seven days left for Bitcoin ETFs to make the corrections. However, within these seven days, experts had predicted Bitcoin to even surpass $50,000.

  1. Markus Thielen, Head of 10x Research and former CEO of Matrixport has predicted that Bitcoin could easily surpass $50,000 by the end of the year 2023.
  2. Another prediction by Matrixport of $45,000 Bitcoin price seems to realize as Bitcoin hovers around $44k as of Dec 23, 2023.
  3. Forbes Magazine predicts that prices could soon go up as high as $60,000 post approvals.
  4. Standard Chartered has opined that Bitcoin is on track to cross $100,000 by 2024.

Bitcoin Price Analysis

As of Dec 23, 2023, Bitcoin commanded a $850 billion plus market cap with a 5.15% market dominance. It held a high influence over the prices of other cryptocurrency.

In the preceding moments of publishing this article, Bitcoin held its price near $43,800.

Bitcoin's Price on Dec 23, 2023 Prior to Bitcoin ETF Deadline
Bitcoin's Price on Dec 23, 2023 Prior to Bitcoin ETF Deadline

The daily chart on Dec 23, 2023 showed that Bitcoin encountered a resistance near $44.8k any move above this could take Bitcoin easily towards $47k which was its last high before crashing as was formed on March 2022.

Technical indicators showed that RSI reversed its trend from a declining trend to neutral. Such situation shows increasing strength in price.

The second indicator MACD showed that Bitcoin's price was very near to a positive crossover in moving averages.

Further, the total volume since the last three days have been positive which shows increased buying interest.

However, in an unlikely situation when Bitcoin ETFs are not approved, the Bitcoin price could fall down to $41k.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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