As Bitcoin and the broader crypto market experienced a sell-off on Wednesday, MN Trading founder Michaël van de Poppe advised against taking excessive risks with leverage and recommended maintaining low bid limits.
Highest liquidation in 2 years
In a post on
Although Van de Poppe does not expect a repeat of this scenario, the Bitcoin spot market has shown a slow recovery. Simeon Hyman, global investment strategist at ProShares, highlighted the spot market's problems in a recent interview with Bloomberg TV.
He pointed out the price differences of Bitcoin between different exchanges and the inherent risks of these platforms. The strategist expressed concerns about the daily settlement processes of Bitcoin futures, which are based on a mix of prices, and in this context expressed skepticism about the practicality of cash creation and redemption mechanisms. Hyman continued to describe the spot market as a bit “weird.”
The Bitcoin ETF will strengthen market optimism
A prolonged sell-off in the market is not expected as there are hopes that the SEC will approve the first spot Bitcoin ETF. Meanwhile, Fidelity Wise Origin Bitcoin Fund recently filed Form 8-A with the Cboe BZX Exchange. Bloomberg's James Seyffart emphasized that it was a matter of registering his shares.
My understanding is that this is simply a securities registration. To be listed, the ETF still needs a 19b-4 approval and an effective/approved/completed S-1 document. No 19b-4 yet. And S-1 is still preliminary (see below). Still looking forward to next week https://t.co/VsgbpJHMVp pic.twitter.com/Iu31AkUswP
— James Seyffart (@JSeyff) January 3, 2024
However, this is only the first step. In order for the ETF to list, it still needs 19b-4 approval and an effective, approved and completed S-1 document, the analyst explained.
As ETF applicants await 19b-4 approval, FOX Business reported that lawyers from the SEC's Division of Trading and Markets met with representatives of major exchanges. An SEC spokesperson clarified to the paper that when the Commission declares a registration statement effective, it will be reflected in EDGAR. In addition, all Commission 19b-4 orders will be posted on the SEC's website and then published in the Federal Register.
Also Read: Bitcoin ETF Approval Will Be Given This Year, Bitwise Affirms
While market optimism took a hit on Wednesday, the global cryptocurrency market cap stands at $1.72 trillion, with daily losses. At press time, the price of Bitcoin (BTC) is around $42,800. According to CoinGecko data, BTC recorded a 5% decline in the last 24 hours.
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Shraddha's professional career spans over five years, during which she worked as a financial journalist, covering economics, markets and cryptocurrencies. As a reporter, she places particular emphasis on learning more about market interaction with new technologies.
The content presented may contain the personal opinions of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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