According to a recent K33 report, a spot Bitcoin (BTC) ETF (exchange traded fund) is set to be approved in January. K33 research director Anders Helseth and senior analyst Vetle Lunde say the recent updates to ETF applications will increase the likelihood of approval from the U.S. Securities and Exchange Commission (SEC).
Also Read: Bitcoin: BlackRock Approaches BTC ETF, Makes Changes
BlackRock and ARK Invest have agreed on a cash creation setup for their respective funds. Both companies accept cash to purchase BTC to create shares for their ETFs.
The researchers also highlighted Bitcoin (BTC) price performance over the previous week. They explained: “This is a reference to BTC'The country's strong rally is attracting new buyers while motivating profit-taking among sellers, leading to price consolidation with increased trading volume.“
Still, the report notes that open interest in BTC perpetual contracts has fallen to yearly lows. It goes on to say that there is “no evidence of retail foam”. However, researchers say this trend is likely to change following approval.
Bitcoin traders make profits: K33
Source – Crypto News
However, K33's report warns that institutional traders could book profits following SEC approval. In this scenario, there could be a correction in the BTC price. According to the report, “Active traders are likely to make profits from their current long positions. In combination, this creates the conditions for a future reduction in CME dominance.“
Also Read: Grayscale CEO: Spot Bitcoin ETF Set to Unlock $30 Trillion.
The US Securities and Exchange Commission (SEC) could approve one or more spot Bitcoin (ETC) ETF applications by January 10, 2024, according to Bloomberg analysts. The SEC has pushed back all deadlines into 2023 and could make a decision early next year. However, the financial regulator may delay its decision for technical reasons. The agency is also taking legal action against several cryptocurrency companies in the US, including Coinbase.
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