Bitcoin could secure its first spot in ETFs today, opening the door for significant investments from major corporations. The U.S. Securities and Exchange Commission (SEC) is targeting approval for the Bitcoin ETF, and if successful, trading is set to begin on January 11. The outcome today could influence market dynamics and potentially lead to a surge.
What is the expected date for the approval of the Bitcoin Spot ETF?
In the coming three days, major company managers, including BlackRock, are expected to finalize approval for multiple Bitcoin spot ETFs, with reports suggesting authorization between January 8th and 10th. The scheduled trading commencement for the ETFs is on January 11th.
Eleven distinct applications for Bitcoin Spot ETFs have been submitted by various companies, and there’s speculation that the US Securities and Exchange Commission (SEC) will approve all simultaneously, possibly within the next three days. While there’s anticipation for a decision by Monday, BlackRock, the largest global asset manager, foresees SEC approval for its Bitcoin ETF, the iShares Bitcoin Trust, on Wednesday, according to Fox Business.
Will Bitcoin Price Surge Afterwards?
Approval may lead to a significant surge in Bitcoin’s price, pushing it beyond the $50,000 threshold. Conversely, a decline post-approval is conceivable in the days that follow. Predicting short-term price movements remains challenging. However, in the long term, the potential for substantial growth in the Bitcoin rate exists, attributed to the impact of ETFs.The current Bitcoin landscape presents two potential scenarios:
- Initial pump to $50K, followed by a retest at $41K.
- Initial retest at $41K, followed by a move to a new all-time high (ATH).
Should BTC effectively surpass the $52,000 mark, the subsequent notable target could potentially reach $100,000 within a matter of weeks.
Could the Bitcoin ETFs Potentially Encounter Rejection?
The probability of approval for Bitcoin Spot ETFs is estimated to be above 90%. BlackRock is anticipating approval for its ETFs on January 10, with trading expected to start the next day.
A rejection could lead to a Bitcoin price decline, requiring patience until the next deadline in March when most applications are due. The SEC would likely take additional weeks for evaluation in such a scenario. Conversely, if the SEC approves spot Bitcoin ETFs, trading could begin as early as the following business day.
