Bitcoin reverses ahead of eagerly awaited ETF decision
Bitcoin has been on a tear ahead of an upcoming January 10 deadline that could see the US Securities and Exchange Commission approve the first exchange-traded fund tied directly to the asset’s spot price. The cryptocurrency’s value rose almost 160 per cent in 2023, alongside a broader rally in digital-asset fortunes.
Even so, Matrixport analyst Markus Thielen said in a note that he expects the SEC will decline all bitcoin ETF proposals this month. Thielen said recent applications will still fall short of requirements that must be met before the SEC signs off on them.
If the SEC were to reject the proposals, some market watchers predicted issuers may opt to retaliate against the regulator.
Several issuers filed named authorised participants for their potential bitcoin-linked products in recent days, a sign that the funds could be nearing approval. Among those named are Wall Street heavyweights Jane Street Capital and JPMorgan, who will be responsible for steering cash in and out of ETFs.
Other assets also fell in tandem with bitcoin, which celebrated its fifteenth year since the mining of its first block on January 3, 2009. Ether declined as much as 11 per cent on Wednesday, while Solana’s SOL tumbled more than 28 per cent.
Bloomberg
