Bitcoin crashes as $100 billion exits crypto market in just 24 hours
The crypto market experienced a significant downturn on January 3, with around $100 billion leaving the market. Bitcoin, the leading cryptocurrency, saw an 8% slump, reaching a low of around $42,000 before rebounding to $43,000 on January 4. Reports and rumors surrounding the potential approval of spot Bitcoin ETFs by the US Securities and Exchange Commission (SEC) have been cited as possible reasons for the market volatility.
Experts remain confident in Bitcoin ETF approvals despite market slump
Despite the recent market crash, industry experts and analysts remain optimistic about the approval of Bitcoin ETFs by the SEC. Crypto YouTuber Lark Davis stated that the market reaction to rumors started by Matrixport provides a glimpse of what could happen if the SEC denies the ETF, but he believes the chances of approval are still overwhelmingly in favor. The deadline for the Ark 21Shares spot BTC ETF application is January 10, and it is expected that the SEC will approve multiple ETFs to prevent a first-mover advantage.
Crypto YouTuber warns of the consequences of SEC denying ETFs
The recent market turmoil caused by rumors highlights the potential impact of an SEC denial of Bitcoin ETFs. Despite this, the prevailing sentiment among experts is that the SEC will approve the ETFs. Tether and VanEck strategist Gabor Gurbacs criticized the market’s reaction to unverified predictions about Bitcoin ETFs and stated that many have learned nothing from past experiences. It seems that the market is easily swayed by speculation and rumors.
SEC expected to batch approve multiple Bitcoin ETFs by January 10
Bloomberg senior ETF analyst Eric Balchunas believes that all signs indicate SEC approvals for Bitcoin ETFs. Continued meetings and filing amendments suggest that the approvals are imminent. Balchunas dismissed the report of a potential rejection and stated that the SEC has been in contact with the issuers to perfect the necessary filings. According to sources close to the proceedings, the SEC could begin notifying issuers of approval as early as Friday, with trading potentially starting next week.
Grayscale in talks with JPMorgan and Goldman Sachs for Bitcoin ETF role
Grayscale, a leading crypto asset manager, is reportedly in discussions with big banks such as JPMorgan and Goldman Sachs to play a significant role in its proposed Bitcoin ETF. These banks are being considered as “authorized participants,” entities that have the power to create and redeem shares of the fund. By involving major banks, Grayscale aims to strengthen the legitimacy and credibility of its Bitcoin ETF proposal. The talks with JPMorgan and Goldman Sachs indicate that institutional interest in Bitcoin ETFs is growing.
Overall, despite the recent market crash, experts and analysts remain confident in the approval of Bitcoin ETFs by the SEC. The potential batch approval of multiple ETFs by January 10 and discussions between Grayscale and big banks suggest a positive outlook for the future of Bitcoin ETFs in the US.
Analyst comment
Positive news: Despite the recent market crash, experts remain confident in the approval of Bitcoin ETFs by the SEC. The potential batch approval of multiple ETFs by January 10 and discussions between Grayscale and big banks indicate a positive outlook for the future of Bitcoin ETFs. The market is expected to rebound and see increased institutional interest.
