The crypto market is eagerly awaiting the potential approval of a spot Bitcoin exchange-traded fund (ETF) in the United States. This decision could trigger the next crypto bull market and a wave of crypto adoption. The list of hopeful spot Bitcoin ETF issuers has grown, with their most recent Form S-1 amendments filed on Jan. 8. Analysts predict that the U.S. Securities and Exchange Commission (SEC) will approve the first spot Bitcoin ETF by Jan. 9 or 10.
Companies like BlackRock and Fidelity, with trillions of dollars in assets under management, could shift the fundamentals of companies such as Coinbase or MicroStrategy. MicroStrategy, which owns 189,150 BTC, could face serious competition and lose its status as the Bitcoin proxy of the traditional markets if a spot Bitcoin ETF is approved. The company’s premium could be negatively affected, as traditional investors might sell the stock in favor of an ETF.
On the other hand, Coinbase has closed deals with the world’s largest asset managers, including BlackRock, VanEck, and Grayscale, to serve as custodians for their proposed Bitcoin ETFs. The exchange could gain more revenue and possibly generate more demand from other big players in the traditional investment sector as it becomes the custodian of choice for the Bitcoin held by the ETF funds. However, the SEC currently has a pending case against Coinbase for failing to register its staking-as-a-service program, which could potentially put pressure on the Coinbase stock price.
The BTC price is highly sensitive to the SEC’s decision to approve or reject the spot Bitcoin ETF. On Jan. 2, Markus Thielen, head of research for crypto platform Matrixport, suggested that the SEC would reject the current BTC ETF applications, causing Bitcoin’s price to drop by 7% on Jan. 3. The rapid price decline highlights the price volatility of Bitcoin and the many sellers waiting on the sidelines for news of the decision from the SEC.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Eric Balchunas, Micheal Saylor, Markus Thielen, Spencer Bogart |
| Companies | Valkyrie, Bitcoin, Coinbase, Franklin Templeton, Bitwise, Matrixport, Bloomberg, Grayscale, Julius Baer, VanEck, Blockchain Capital, ARK Invest, Fidelity, U.S. Securities and Exchange Commission, BlackRock, Tesla, MicroStrategy, WisdomTree, Marathon |
| Currencies | Bitcoin |
| Securities | Coinbase Global Inc., MicroStrategy Inc., ARK Investment Management LLC, BlackRock Inc., Fidelity Investments Inc. |
