There is speculation in the cryptocurrency community about the expected Bitcoin Exchange Traded Fund (ETF) decision this week. ARK 21Shares expects a decision on Wednesday, intensifying discussions about the potential impact of both approval and rejection on Bitcoin price.
The forecasts vary, with the expectation of a price increase upon approval and possible price decreases upon both approval and rejection. However, one analyst questioned the reasons why people are “shorting” Bitcoin before making the decision.
Debate erupts over Bitcoin ETF approval
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The SEC is expected to provide ARK 21Shares with a decision on its spot Bitcoin ETF application on January 10th. The deadline for other asset managers follows shortly afterwards.
Alex Becker tells his 922,000 followers on X that the approval of a Bitcoin ETF will not result in a “Sell the News” event.
He explains that it is more about opening up the asset to much wealthier individuals. Furthermore, these individuals may never have invested in cryptocurrencies in any other way. This is due to the unconventional approach, for example on a stock exchange, in contrast to the stock exchange:
“It allows the world’s largest money holders to invest actively and in a way that is convenient and easy for them.”
At the time of publication, the price of Bitcoin is $44,239.
Bitcoin price chart 1 month. Source: BeInCrypto
Read more: How to Prepare for a Bitcoin ETF: A Step-by-Step Approach
Meanwhile, Swan Bitcoin technical lead Dan Webb points out that even if the price falls if the ETF is approved, the downtrend will not be as extreme as the potential uptrend in the event of positive news.
“What is the risk-reward of shorting Bitcoin this week?” Even if the ETF is approved and it is a “sell the news” event, what is the potential upside for shorts? 5-10% (assuming there is no leverage)?”
Mati Greenspan, the founder and CEO of Quantum Economics, told BeInCrypto earlier this month that he believes SEC chief Gary Gensler is unlikely to disappoint his allies by approving an ETF:
“I highly doubt Gary Gensler will approve any type of crypto ETF. I think if it is in his power, he will do everything he can to delay crypto innovation for the benefit of the big bankers he is beholden to.”
Read more: Who will own the most Bitcoins in 2024?
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