Bloomberg Analyst Cautions About Possible Retraction Following Approval of Bitcoin ETFS

Bloomberg analyst James Seyffart has shared insights into the ongoing developments surrounding the possible approval of a Bitcoin ETF. Seyffart discussed the unpredictability of the situation and mentioned the initial doubts they faced when making earlier predictions about Gary Gensler’s approval.

When discussing the $10 million seeding from BlackRock, Seyffart mentioned that people might be overly focused on this aspect. He explained BlackRock’s past strategy of initially seeding with a smaller amount and then injecting larger sums after the ETF launch.

Seyffart speculated that ETF trading could potentially start around Martin Luther King Jr. Day, with approval expected between January 8th and 10th.

The conversation also delved into the complexities of ETF approvals, emphasizing the need for both 19 B4 approval and S1 approval from the SEC before the ETFs can be listed. Seyffart explained that the process might not take as long as some anticipate, with trading potentially beginning within 24 hours of S1 approval.

As the discussion turned to the crypto community’s interest in ETF details, Seyffart acknowledged the unique level of engagement in this situation. He attributed it to a convergence of factors such as government decisions, significant deadlines, and the involvement of major asset managers.

Seyffart addressed concerns about a potential market downturn after approval, drawing comparisons with the gold ETF launch in 2003. However, he noted the differences, highlighting that Bitcoin already has established investment avenues unlike gold at that time.

When asked about Bitcoin’s price movement, Seyffart refrained from providing a specific forecast but acknowledged the potential for increased institutional participation due to ETFs. He cautioned against expecting an immediate influx of institutional funds but anticipated a broader impact in the long run.