Anthony Scaramucci Forecasts Bitcoin ETF Approval by Next Week
Renowned financial analyst Anthony Scaramucci has put forward an interesting speculation that the approval of a cash-based Bitcoin Exchange-Traded Fund (ETF) could be imminent. He suggests that this announcement may come as early as next week, a strategic move to coincide with the holiday season and potentially go unnoticed by the public.
Scaramucci tweeted, “Just a theory: and don’t be surprised if it happens, but it feels like the bitcoin cash ETF could be approved next week. It’s a holiday week and it’s also a way to bury the news when people aren’t paying attention. Classic news dump. Market isn’t expecting it. Be ready.”
The journey towards launching Bitcoin ETFs in the United States has been a long and complex one, with expectations for a debut in mid-to-late January 2024. However, the real intrigue lies in the operational framework of these ETFs, particularly due to the U.S. Securities and Exchange Commission’s (SEC) insistence on a cash-only transaction process. This requirement deviates from the traditional in-kind redemption method and is seen as adding unnecessary complexity and potential costs for retail investors.
This shift in stance is partly influenced by recent legal challenges that have questioned the SEC’s authority over digital assets. The final obstacle of choosing between “cash only” and “in-kind” transactions has seen all ETF providers aligning with the SEC’s preference for a cash-only approach.
As the market awaits the SEC’s approval, QCP Capital has provided insights into potential market movements for Bitcoin. The firm predicts that Bitcoin could encounter resistance in the $45,000 to $50,000 price range, with a possible temporary drop to around $36,000 before continuing its upward trend.
Amidst this volatility, QCP Capital suggests that existing Bitcoin investors may want to consider selling covered calls to take advantage of the market’s forward movement and volatility. Additionally, buying out-of-the-money puts could be a strategic move to navigate any potential dip following the ETF approval.
QCP Capital remains optimistic about the long-term trend for Bitcoin, particularly leading up to the anticipated Bitcoin halving event. At the time of writing, Bitcoin has seen a 1.5% increase in the past twenty-four hours, reaching $44,423. Scaramucci’s theory, along with QCP Capital’s market analysis, indicates that the crypto market is on the verge of a significant change as we enter the new year.