Bitcoin on the Verge: Various Viewpoints on the Prospective ETF Approval
Amidst the anticipation surrounding the impending decision on the Bitcoin exchange-traded fund (ETF), members of the crypto community are engaged in lively discussions regarding its potential impact on Bitcoin. All eyes are on ARK 21Shares, eagerly awaiting the SEC’s verdict, which is set to be announced on Wednesday.
Contrary to popular belief, the approval of ARK 21Shares’ spot Bitcoin ETF application by the United States Securities and Exchange Commission (SEC) has sparked enthusiasm among analysts, leading to fervent conversations on social media platforms, particularly X (formerly Twitter), which has become a hub for crypto enthusiasts and analysts to exchange thoughts on the potential aftermath. With the deadline drawing closer on January 10, these discussions are gaining momentum and becoming a significant topic within the crypto community.
However, analyst Alex Becker has stirred things up with a recent post, suggesting that if the SEC grants approval for a Bitcoin ETF, it will not merely be a typical “sell the news” event. Instead, Becker believes it could enhance Bitcoin’s accessibility, particularly for individuals with substantial wealth who may have been hesitant to enter the crypto market through conventional means.
The reason behind the ETF not being a sell the news event is straightforward: self custody. Consider the scenario of a retiree, pension fund, or financial manager. Many people, including myself, do not feel comfortable self-custodying millions (or even tens of millions) of dollars. It is highly unlikely that they would leave their funds on a platform without proper security measures in place.
According to Coinpedia, Bitcoin’s current price is $44,039, laying the foundation for potential market fluctuations based on the SEC’s decision.
As the discussions continue, industry experts and market analysts are joining the conversation to provide their insights on the potential outcomes. Dan Webb, Swan Bitcoin’s engineering lead, delves into the risk-reward considerations for those shorting Bitcoin, emphasizing the potential upside in the face of positive news compared to the downside risk.
Adding another dimension to the debate, Mati Greenspan, Founder and CEO of Quantum Economics, shares his perspective. Greenspan speculates on SEC Chair Gary Gensler’s cautious approach, suggesting that he may be reluctant to approve any crypto-related ETF to align his decisions with the interests of traditional financial institutions.
Tags:
– Bitcoin
– Bitcoin ETF