Bitcoin price continued its upward trend from last week after news that the US Securities and Exchange Commission (SEC) was meeting with well-known asset manager Fidelity regarding its planned spot BTC exchange-traded fund (ETF). has.
At the December 7 meeting, Fidelity presented a detailed paper outlining the “in-kind” creation and redemption models for the spot Bitcoin ETF. Several members of CboeBZX also attended the meeting.
Fidelity meets SEC regarding Bitcoin ETF
In its presentation, Fidelity explained how various parties will coordinate to create spot Bitcoin ETF shares and ultimately deliver them to the market maker for further distribution through a broker-dealer.
Nate Geraci, the president of the ETF store, noted that the most important part of the workflow is that “registered broker-dealer firms do not touch the coin in any workflow.”
Presentation of the asset manager's loyalty to the SEC. Source: Eric Balchunas
The presentation follows the appearance of Fidelity's ticker symbol “FBTC” on the US Depository Trust and Clearing Corporation (DTCC) website. Fidelity is the third largest asset management company in the world with more than $4 trillion in assets under management.
This is not the first time a Bitcoin ETF applicant has met with the SEC. Last month, the financial regulator held discussions with several applicants, including Grayscale, BlackRock, Hashdex and others.
What's next for the BTC price?
Observers suspect that these engagements have helped reinforce positive sentiment around the crypto market.
Crypto trader Mags said Bitcoin is testing an important level and highlighted two scenarios in which the price moves towards $48,000 or falls back to $35,000. He added that the current market upswing will continue in any scenario.
“BTC traded within a huge range between 2021 and 2022, the price later collapsed and hit bear market lows at $15,500. “The price has recently reclaimed the old 2021-2022 range and is currently testing the middle range…The overall idea is bullish, all dips are buying opportunities,” said Mags.
Read more: How to Prepare for a Bitcoin ETF: A Step-by-Step Approach
On the other hand, asset manager VanEck stated that the price of BTC is unlikely to fall below $30,000 in the first quarter of next year and could reach a new all-time high in the fourth quarter. According to the company, more than $2.4 billion is expected to flow into spot Bitcoin ETFs slated for approval in the first quarter, laying the foundation for a bullish year for the top cryptocurrency.
“If Bitcoin hits $100,000 by December, we expect Satoshi Nakamoto to be named Time Magazine's 'Man of the Year,'” VanEck predicted.
Bitcoin price prediction. Source: VanEck
According to data from BeInCrypto, the price of Bitcoin has increased by more than 180% since the beginning of the year. The flagship asset hit a yearly high of more than $44,000 before falling back to its current level of $43,860 at press time.
Disclaimer
In accordance with Trust Project guidelines, BeInCrypto is committed to unbiased and transparent reporting. The aim of this news article is to provide accurate and up-to-date information. However, readers are advised to independently verify the facts and consult a professional before making any decisions based on this content.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.