Anthony Scaramucci Hints at Holiday Approval: Is a Bitcoin ETF on the Way?
Anthony Scaramucci, a renowned financial analyst, has made a bold claim that the approval for a cash-based Bitcoin Exchange-Traded Fund (ETF) could be imminent, possibly even next week. Interestingly, this timing could coincide with the holiday season, potentially slipping past the attention of many observers.
The introduction of Bitcoin ETFs in the U.S. has been highly anticipated, with many expecting a launch in January 2024. However, the unique aspect is the U.S. Securities and Exchange Commission’s (SEC) preference for cash transactions, which differs from the typical in-kind redemption method. This preference poses potential challenges for everyday investors.
The shift towards cash transactions is partly driven by recent legal challenges that questioned the SEC’s authority over digital assets. The final obstacle, choosing between “cash only” and “in-kind” transactions, has now been resolved, with all ETF providers aligning themselves with the SEC’s preference for a cash-only approach.
In light of these developments, Scaramucci suggests that the approval for a cash-based Bitcoin ETF could be strategically announced next week. With it being a holiday week, there is a possibility that the news could be buried and go unnoticed by many. This unexpected timing could catch the market off guard, as it is not currently expecting such an approval.
In terms of Bitcoin’s price movements, QCP Capital, a key market observer, predicts that the cryptocurrency could see fluctuations between $45,000 to $50,000. However, there might be a short-term dip to around $36,000 before a rebound. To capitalize on market momentum, QCP Capital suggests exploring covered calls for Bitcoin investors. Additionally, they recommend considering out-of-the-money puts to manage potential post-ETF market shifts.
Looking ahead, QCP Capital remains positive about Bitcoin’s long-term future, especially considering the upcoming Bitcoin halving event. Currently, Bitcoin has risen by 1.5% in the past day, reaching $44,423. Combining Scaramucci’s insights with QCP Capital’s analysis indicates that we are approaching a pivotal moment for the crypto market as we enter the new year.
If you found this article interesting, you may also want to read Anthony Scaramucci’s insights on the financial system and Bitcoin’s role.
Tags: Bitcoin ETF