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SEC Okays Bitcoin ETFs: Rally Already Priced-In Or More in Cards?
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The U.S. Securities and Exchange Commission (SEC) recently approved 11 applications for spot bitcoin ETFs (Exchange-Traded Funds), a landmark decision that could significantly impact the cryptocurrency industry. This move marks a significant shift in the SEC's approach towards cryptocurrencies, particularly bitcoin.
The approved ETFs are products from major financial players such as Grayscale Bitcoin Trust (GBTC - Free Report) , BlackRock’s iShares Bitcoin Trust (IBIT), ARK 21Shares Bitcoin ETF (ARKB), Bitwise Bitcoin ETF (BITB), Invesco Galaxy Bitcoin ETF (BTCO), WisdomTree Bitcoin Fund (BTCW), VanEck Bitcoin Trust (HODL), Franklin Bitcoin ETF (EZBC), Fidelity Wise Origin Bitcoin Trust (FBTC), Valkyrie Bitcoin Fund (BRRR) and Hashdex Bitcoin ETF (DEFI). These began trading on Thursday, leading to fierce competition for market share.
These approvals come after a long history of rejections by the SEC due to concerns about market manipulation and the speculative nature of cryptocurrencies. In fact, over the years, the SEC had denied more than 30 similar applications. Jan 11, 2024 was a historic day for Bitcoin as the cryptocurrency at one point on Thursday surged past $49,000 to levels last seen in 2021 before falling back to $46,075 as of 9:30 p.m. in New York.
Did BlackRock’s Filing Paint the Rosy Picture?
A major turning point occurred last year when the largest money manager, BlackRock, filed for a spot bitcoin ETF. This event, along with a legal victory by Grayscale Investments over the SEC, led the SEC to change its stance.
What Lies Ahead?
The approval of these ETFs is seen as a potential pivotal moment for the crypto industry, possibly opening doors for increased institutional investment, adoption and consumer participation in bitcoin. It's expected that these ETFs will make it easier for investors to gain exposure to bitcoin without directly owning the asset.
How Far Can Bitcoin Go from Here?
Bitcoin has surged massively in the past year. But can it surge from here or the potential price gain from a SEC approval is already baked in?
The predictions for Bitcoin's price in 2024 vary widely among experts and analytical models.
Elliott Wave Charting Prediction: According to BitQuant, as reported by Cointelegraph, Bitcoin's price could potentially reach $250,000, following a pattern of previous cycles and post-having in 2024. The Bitcoin halving event is scheduled for April 2024. This event, which happens approximately every four years, reduces the reward that miners receive for verifying transactions and adding new blocks to the blockchain.
Standard Chartered & Nexo’s Forecast: Reuters mentioned that in Jul 2023 Standard Chartered has raised its Bitcoin forecast for 2024 to $120,000, marking a significant bullish stance. Antoni Trenchev, a noted bitcoin bull and co-founder of Nexo, a cryptocurrency exchange, believes bitcoin could hit $100,000 in 2024.
BitMiing Projections: Youwei Yang, chief economist of crypto mining firm Bit Mining, believes that bitcoin could reach a high of $75,000 by 2024, as quoted on CNBC.
CoinShares Projections: James Butterfill, head of research at CoinShares, said the investing environment for digital assets is set for “significant change” in 2024, thanks to a SECapproval, as quoted on CNBC. CoinShares’ target is $80,000.
Predictions by Financial Analysts: In Aug 2023, Financial experts like Robert Kiyosaki and Blockstream CEO Adam Back, as mentioned by Coinpedia, predict Bitcoin to reach $120,000 and over $100,000 respectively in 2024.
Bottom Line
If you think those targets for Bitcoin or cryptocurrencies are lofty enough, you can consider this simple logic: Bitcoin and cryptocurrencies are often viewed as risky assets. With the Federal Reserve potentially halting its rate hike campaign or cutting rates this year, risk-on sentiments could gain momentum. Most analysts believe that there is a positive correlation between Bitcoin and other financial markets, like the Euro and Nasdaq, suggesting a bullish trend for Bitcoin in 2024.
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SEC Okays Bitcoin ETFs: Rally Already Priced-In Or More in Cards?
The U.S. Securities and Exchange Commission (SEC) recently approved 11 applications for spot bitcoin ETFs (Exchange-Traded Funds), a landmark decision that could significantly impact the cryptocurrency industry. This move marks a significant shift in the SEC's approach towards cryptocurrencies, particularly bitcoin.
The approved ETFs are products from major financial players such as Grayscale Bitcoin Trust (GBTC - Free Report) , BlackRock’s iShares Bitcoin Trust (IBIT), ARK 21Shares Bitcoin ETF (ARKB), Bitwise Bitcoin ETF (BITB), Invesco Galaxy Bitcoin ETF (BTCO), WisdomTree Bitcoin Fund (BTCW), VanEck Bitcoin Trust (HODL), Franklin Bitcoin ETF (EZBC), Fidelity Wise Origin Bitcoin Trust (FBTC), Valkyrie Bitcoin Fund (BRRR) and Hashdex Bitcoin ETF (DEFI). These began trading on Thursday, leading to fierce competition for market share.
These approvals come after a long history of rejections by the SEC due to concerns about market manipulation and the speculative nature of cryptocurrencies. In fact, over the years, the SEC had denied more than 30 similar applications. Jan 11, 2024 was a historic day for Bitcoin as the cryptocurrency at one point on Thursday surged past $49,000 to levels last seen in 2021 before falling back to $46,075 as of 9:30 p.m. in New York.
Did BlackRock’s Filing Paint the Rosy Picture?
A major turning point occurred last year when the largest money manager, BlackRock, filed for a spot bitcoin ETF. This event, along with a legal victory by Grayscale Investments over the SEC, led the SEC to change its stance.
What Lies Ahead?
The approval of these ETFs is seen as a potential pivotal moment for the crypto industry, possibly opening doors for increased institutional investment, adoption and consumer participation in bitcoin. It's expected that these ETFs will make it easier for investors to gain exposure to bitcoin without directly owning the asset.
How Far Can Bitcoin Go from Here?
Bitcoin has surged massively in the past year. But can it surge from here or the potential price gain from a SEC approval is already baked in?
The predictions for Bitcoin's price in 2024 vary widely among experts and analytical models.
Elliott Wave Charting Prediction: According to BitQuant, as reported by Cointelegraph, Bitcoin's price could potentially reach $250,000, following a pattern of previous cycles and post-having in 2024. The Bitcoin halving event is scheduled for April 2024. This event, which happens approximately every four years, reduces the reward that miners receive for verifying transactions and adding new blocks to the blockchain.
Standard Chartered & Nexo’s Forecast: Reuters mentioned that in Jul 2023 Standard Chartered has raised its Bitcoin forecast for 2024 to $120,000, marking a significant bullish stance. Antoni Trenchev, a noted bitcoin bull and co-founder of Nexo, a cryptocurrency exchange, believes bitcoin could hit $100,000 in 2024.
BitMiing Projections: Youwei Yang, chief economist of crypto mining firm Bit Mining, believes that bitcoin could reach a high of $75,000 by 2024, as quoted on CNBC.
CoinShares Projections: James Butterfill, head of research at CoinShares, said the investing environment for digital assets is set for “significant change” in 2024, thanks to a SECapproval, as quoted on CNBC. CoinShares’ target is $80,000.
Predictions by Financial Analysts: In Aug 2023, Financial experts like Robert Kiyosaki and Blockstream CEO Adam Back, as mentioned by Coinpedia, predict Bitcoin to reach $120,000 and over $100,000 respectively in 2024.
Bottom Line
If you think those targets for Bitcoin or cryptocurrencies are lofty enough, you can consider this simple logic: Bitcoin and cryptocurrencies are often viewed as risky assets. With the Federal Reserve potentially halting its rate hike campaign or cutting rates this year, risk-on sentiments could gain momentum. Most analysts believe that there is a positive correlation between Bitcoin and other financial markets, like the Euro and Nasdaq, suggesting a bullish trend for Bitcoin in 2024.