The approval of spot Bitcoin ETFs by the SEC is anticipated by many experts, with the expectation that it could happen any day now. This follows the SEC’s final comments to applicants and the swift responses from asset managers. However, the impact of this approval on Bitcoin prices remains a topic of debate, with some wondering if it will be a buy or sell-the-news event. This is due to the fact that liquid markets often reward those who anticipate future events correctly.
Expectations for a wave of Bitcoin ETF approvals have been high for some time, leading to speculation that this news may already be factored into the price. Two experts have shared their thoughts on this matter.
Alex Becker, CEO of Hyros, an AI trading company, believes that the ETF approval will not be a sell-the-news event. He explains that the reason for this is the issue of self-custody. Many people, including retirees, pension funds, and financial managers, do not feel comfortable self-custodying large amounts of money. Becker concludes that the ETF approval will lead to a steady flow of investment into the asset from the world’s largest wealth holders.
On the other hand, Vetle Lunde, a Senior Analyst from K33 Research, a cryptocurrency intelligence firm, believes there is a 75% chance that the Bitcoin ETF approval will be a sell-the-news event. He points out that traders are considerably exposed ahead of the verdict, with derivatives pushing massive premiums following Bitcoin’s continuous upside momentum over the last three months. Lunde predicts that a sell-the-news event could become a self-fulfilling prophecy as a significant share of short-term market participants are looking at the event as an opportunity for profit-taking. He plans to exit his long-held Bitcoin position from September to early January at the verdict date due to expected sizeable profit-taking from short-term traders.
This sentiment is shared by several other crypto experts, including analysts from CryptoQuant. Jurrien Timmer, Fidelity’s director of global macro, also shared his thoughts on the matter, suggesting that it’s not a simple yes-or-no question.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Vetle Lunde, Alex Becker, Jurrien Timmer |
| Companies | Hyros, Fidelity, CryptoQuant, Investors Business Daily, Securities and Exchange Commission, K33 Research |
| Currencies | Bitcoin |
| Securities | None |
