America’s Bitcoin Tops $45K for First Time in 21 Months

Contextualizing the Most Recent Crypto Market Price Changes as of January 9, 2024

Bitcoin remains above $46K as anticipation builds for the First Mover Americas ETF.

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Latest Prices

Bitcoin held above $46,500 on Tuesday morning after briefly touching $47,000 as the ETF race ramps up. The cryptocurrency has gained around 5% over the past 24 hours.

Will spot bitcoin ETFs be approved in the near future?

While most market analysts say the U.S. Securities and Exchange Commission (SEC) will approve a spot bitcoin exchange-traded fund, some do not see this happening. Youwei Yang, the chief economist at BIT Mining, thinks the approval will be delayed for at least another 3 months. According to Yang, the SEC may use reasons or excuses to delay, such as questioning manipulative behaviors observed in the crypto market or alleging criminal or terror activities linked to cryptocurrencies. However, other analysts believe that the market has already priced in the expectation of ETF approval, limiting the upside potential.

How are BlackRock and VanEck progressing with their bitcoin ETFs?

BlackRock and VanEck, two of the 13 firms hoping to launch bitcoin (BTC) ETFs in the U.S., filed updated documents on Tuesday. The filings indicate that the two were among the prospective issuers to receive comments from the SEC in the past 24 hours. The latest updated filing seeks to mitigate damage to shareholders in the event of insolvency and avoid conflicts of interest.

• BlackRock and VanEck have submitted revised S-1 forms for a bitcoin ETF to address the SEC’s recent comments.
• XRP Price Prediction: Rumors of XRP ETF and Potential Rally in April 2024
• SEC might postpone approval of spot Bitcoin ETF as it reviews comments on newly submitted S-1 forms.

The discount on the Grayscale Bitcoin Trust reaches its lowest level in 18 months

The discount on the Grayscale Bitcoin Trust (GBTC), the world’s largest bitcoin fund, slipped to the narrowest since April 2021 ahead of an expected conversion to a spot bitcoin ETF. Data shows the discount shrank to as low as 5.6% on Monday, reaching a level last seen in June 2021. The fund has traded at a discount since February 2021 but expectations of an ETF approval and rising bitcoin sentiment have steadily eroded the gap. Each GBTC share currently holds $41.86 in bitcoin. Traders can use the discount and premium fluctuations as part of their trading strategies.

The chart shows the number of “bitcoin ETF” mentions on social media (bars) and bitcoin’s price since November. The market has been squarely focused on the ETF optimism, setting the stage for a “sell the fact” price drop following the SEC’s approval of spot exchange-traded funds. The U.S. SEC is likely to approve one or more spot ETFs by Jan. 10. Source: Santiment – Omkar Godbole

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Edited by Sheldon Reback.

References: – Bitcoin Miners Reduce BTC Holdings as Miner Price Nears $65K – US Prosecutors Declare SBF, See Second Trial Report – BTC Price at $43K as Smart Money Bets Big on Bitcoin Ahead of Potential ETF Approval – Bitcoin ETF Applicants File Updated S1 Form, SEC’s Comments Delay Signal – GBTC Discount Sinks to Lowest Level in 18 Months as Grayscale Falls Behind in ETF Fee Race

Q&A: Answering Your Burning Questions

Q1. What are the chances of spot bitcoin ETFs getting approved by the SEC in the near future? A: Most market analysts believe that the SEC will approve a spot bitcoin ETF. However, there are some who are skeptical and think that the approval will be delayed for various reasons, such as concerns about manipulative behaviors in the crypto market or the alleged involvement of cryptocurrencies in criminal or terror activities.

Q2. How are BlackRock and VanEck progressing with their bitcoin ETFs? A: BlackRock and VanEck, two major firms seeking to launch bitcoin ETFs in the U.S., have filed updated documents and received comments from the SEC. This indicates that they are actively working towards obtaining approval for their ETFs. The latest filing includes measures to protect shareholders in case of insolvency and to avoid conflicts of interest.

Q3. What is the current discount on the Grayscale Bitcoin Trust (GBTC)? A: The discount on the GBTC has reached its lowest level since April 2021, shrinking to as low as 5.6% on Monday. This discount has been narrowing due to the expected conversion of GBTC to a spot bitcoin ETF and the growing positive sentiment towards bitcoin. Traders can take advantage of these discounts and premiums as part of their trading strategies.

Analysis and Outlook

The recent surge in bitcoin price and the ongoing discussions about spot bitcoin ETFs indicate a growing interest and optimism in the cryptocurrency market. While some experts remain cautious and expect delays in ETF approvals, the majority believe that the SEC will give the green light. This anticipated approval has already been priced in by the market, limiting the potential for further price gains.

As for BlackRock and VanEck, their progress with their bitcoin ETFs is a positive sign for the future of cryptocurrency investment. These firms’ efforts demonstrate the growing mainstream acceptance of bitcoin and its potential as an investable asset. If approved, bitcoin ETFs could open up the cryptocurrency market to a wider range of investors and institutions.

Looking ahead, investors and traders should keep a close eye on the SEC’s decision regarding spot bitcoin ETFs. An approval could lead to a surge in bitcoin price and further institutional investment. However, it’s important to note that market dynamics can be unpredictable, and a “sell the fact” price drop following the news is also a possibility.

Overall, the outlook for bitcoin and the cryptocurrency market remains positive. The growing interest from institutional investors, the potential approval of bitcoin ETFs, and the narrowing discount on GBTC all contribute to a bullish sentiment. However, investors should always do their research, assess their risk tolerance, and make informed investment decisions.

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Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial or investment advice.

Cover Image Source: First Mover

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