SEC’s Plan for December 29th: Bitcoin ETF Race Approaching Your 401(k)
The approval of a Bitcoin ETF in 2024 is predicted to have a significant impact on the cryptocurrency market. As the January 10 deadline approaches, the price of Bitcoin and other cryptocurrencies is expected to either rise or fall. However, the decision of who cuts their holdings before the end of the year will ultimately determine the price action.
Retirement investors have shown interest in Bitcoin, which has experienced over 150% growth this year. However, the extreme volatility of the cryptocurrency has discouraged direct allocation of retirement funds to this emerging asset class.
The upcoming deadline on January 10 holds great importance as it could open the door for spot Bitcoin ETFs to enter the market. These ETFs would track real-time Bitcoin prices, providing retirement savers with diversified crypto investment options through their 401(k) plans, solo 401(k)s, or self-directed IRAs.
If the U.S. SEC approves spot Bitcoin ETFs, CNBC predicts that more companies will offer them within their 401(k) lineup. This would give retirement savers who believe in the long-term potential of cryptocurrency greater access to it as an asset class.
However, the Department of Labor has expressed caution about including cryptocurrencies directly in retirement plans due to the associated risks. The rise of Tether and other cryptocurrencies has also raised questions about their integration into retirement strategies, albeit with limited possibilities.
The potential approval of spot Bitcoin ETFs could revolutionize retirement investments. It could reduce risks, offer tax benefits, and alleviate concerns about Bitcoin’s volatility for retirement investors. Although major custodians like Schwab and Fidelity have refrained from direct crypto investments, their engagement in crypto-related ventures suggests a growing interest in the traditional financial sector.
In cases where employers are hesitant to incorporate spot Bitcoin ETFs into their 401(k) plans, individuals can explore alternatives such as opening IRAs that accommodate these ETFs. The arrival of these ETFs is expected to revolutionize retirement investment strategies and potentially position cryptocurrencies as a mainstream asset class within retirement portfolios.
The current price of Bitcoin is hovering around $43,530 and has been stagnant, unable to break through the crucial $44,000 resistance level. Indicators like RSI and MACD suggest that the price may continue to move sideways until closer to the spot Bitcoin ETF approval date. The SEC’s deadline on December 29 could impact the approval of Bitcoin ETFs on January 10.
There is uncertainty over which firms might miss the deadline, but further clarity on approved filings is expected within 72 hours. Any updates on potential approvals by January 10 before December 29 could shift market sentiment and potentially push the price of Bitcoin above the $44,000 mark, changing the trend from neutral to bullish.