Experts Anticipate Favorable Market Reaction to Bitcoin ETF Approval, Dispelling ‘Sell the News’ Perception
Amidst the fervor surrounding the imminent decision on the Bitcoin exchange-traded fund (ETF), members of the cryptocurrency community are engaged in spirited discussions about the potential implications for Bitcoin. All eyes are on ARK 21Shares, eagerly awaiting the Securities and Exchange Commission’s (SEC) verdict, which is set to be revealed on Wednesday.
Contrary to popular belief, the SEC’s ruling on ARK 21Shares’ Bitcoin ETF application has prompted many analysts to express their excitement on social media platforms, particularly X (formerly Twitter), which has become a hub for crypto enthusiasts and analysts to dissect the potential aftermath. As the January 10 deadline looms, these conversations have intensified and become a significant talking point within the crypto community.
However, analyst Alex Becker has shaken things up with a recent post, suggesting that if the SEC approves a Bitcoin ETF, it will not simply be a “Sell the news” moment. Instead, Becker believes that it could open up Bitcoin to a wider audience, particularly wealthy individuals who may have been hesitant to enter the crypto space through traditional means.
The reason behind the ETF not triggering a “sell the news” event is straightforward: self-custody. Becker highlights the uneasiness of individuals and institutions, such as retirees, pension funds, and financial managers, when it comes to personally safeguarding millions or even tens of millions of dollars. Leaving their money on a self-custody platform is not a viable option for them.
Coinpedia reports that Bitcoin’s current price stands at $44,039, setting the stage for potential market fluctuations based on the SEC’s decision.
Within these discussions, industry experts and market analysts are offering their insights on the possible outcomes. Dan Webb, Swan Bitcoin’s engineering lead, explores the risk-reward considerations for those shorting Bitcoin, emphasizing the potential for significant gains in the event of positive news, compared to the downside risk.
Mati Greenspan, Founder and CEO of Quantum Economics, adds another layer to the conversation with his speculation on SEC Chair Gary Gensler’s cautious approach. Greenspan suggests that Gensler may be reluctant to approve any crypto-related ETF in order to align with the interests of traditional financial institutions.
Tags: Bitcoin, Bitcoin ETF