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- Jacquelyn Melinek of TechCrunch suggests that potential SEC approvals for Bitcoin spot ETFs for multiple firms could happen today.
- Experts and analysts debate whether the approval will result in a ‘sell-the-news’ event, with Bitcoin’s price already showing a recent uptick in anticipation.
Since the end of last year, as CNF previously reported, the crypto community has been highly anticipating the approval of a spot Bitcoin ETF. Furthermore, experts believe that this decision could pave the way for the approval of all 12 pending applications. Last Friday, the applicants were invited to revise their applications, indicating that approvals are imminent.
In a pivotal update, Jacquelyn Melinek of TechCrunch tweeted about potential approvals of Bitcoin spot ETFs by the SEC for multiple firms. This was based on information from highly placed sources.
heard from sources extremely close to the matter that the bitcoin spot ETF is going to be approved by the SEC for *multiple* firms' applications
— Jacquelyn Melinek (@jacqmelinek) January 4, 2024
A response to this tweet suggested a strategic release of this news: “Drop the good news Friday night after markets close so that people who know how to buy real Bitcoin to cold storage get a few more days of low prices.” This echoes CNF’s prediction that the SEC is expected to begin notifying issuers of approvals by this Friday, January 5.
Reacting to these developments, a tweet from a community member sought more clarity, pointing to a tweet by Alex Otta which included insights from Bloomberg’s Senior ETF Analysts James Seyffart and Eric Balchunas.
@JSeyff @EricBalchunas any news from you? 🙂
— Alessandro Ottaviani (@AlexOttaBTC) January 4, 2024
Balchunas provided an update for this inquiry, saying,
SEC is giving final comments as we speak, then issuers will submit final 19b-4s and S-1s soon after. So I mean this is definitely as close to ‘done’ as we’ve been but no official approval as far as I know.
Speculations on Market Reaction Post-ETF Approval
According to K33 Research, Senior Analyst Vetle Lunde posits that the ETF approvals might lead to a ‘sell-the-news’ event, considered the most likely outcome. As Bitcoin reached $46,000 amid the ETF anticipation, Lunde noted,
A sell-the-news event could become a self-fulfilling prophecy as a significant share of short-term market participants has eyed the event for profit-taking.
As of the latest update, Bitcoin (BTC) has rebounded from a slight downtrend over the past days, trading around $43,860.99. It experienced a 1.92% increase in the last 24 hours and a 3.76% rise over the past week.
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