BTC Rebounds Amidst ETF Approval Speculation: What’s Next for Bitcoin and Ethereum?

On Thursday, there were reports circulating that the SEC was providing its final comments to issuers and could soon approve several spot-based bitcoin ETF applications.

Bitcoin rebounds above $44K as the approval of a spot BTC ETF appears more likely.

After Wednesday’s flash crash, Bitcoin (BTC) has managed to recover most of its losses. The rebound comes as reports suggest that the approval of a spot exchange-traded fund (ETF) for BTC could be imminent. Investors have shrugged off the crash, remaining optimistic about the prospects of an ETF approval by the U.S. Securities and Exchange Commission (SEC). The anticipation of BTC ETFs has been a driving force in the crypto market, with many expecting significant inflows into the largest cryptocurrency.

🚀 The ETF Approval Speculation

A Matrixport report warned of a potential rejection, triggering a brief 10% tumble in Bitcoin. However, most industry observers still believe that the SEC will approve applications, possibly as soon as Friday. Bloomberg ETF analyst Eric Balchunas reported that the agency was providing final comments on the applications, indicating progress in the approval process. Additionally, TechCrunch reporter Jacquelyn Melinek, citing sources close to the matter, stated that the SEC will soon approve multiple applications. These developments have fueled optimism among investors, leading to a 4% increase in BTC’s price over the past 24 hours, bringing it back to $44,500.

💼 Financial Advisor Sentiments

Surprisingly, a survey conducted by Bitwise and VettaFi revealed that only 39% of financial advisors expected a spot BTC ETF approval this year. However, the same survey found that 88% of advisors saw the ETF as a major catalyst and expressed interest in buying Bitcoin after approval. This discrepancy suggests that while advisors may have doubts about near-term approval, they recognize the long-term value of an ETF for Bitcoin.

🌟Ether Takes the Spotlight

Once BTC ETFs receive approval, investors are expected to shift their focus to Ethereum’s Ether (ETH). Markus Thielen, research head at Matrixport, believes that once spot BTC ETFs get the green light, attention will quickly turn to spot-based Ether ETF applications. Thielen predicts that Ethereum will outperform Bitcoin significantly once an ETH ETF decision is reached, likely around May. This could lead to a surge in demand for Ether as investors seek exposure to the second-largest cryptocurrency.

💡Expert Commentary and Analysis

Thielen’s analysis adds an interesting dimension to the ongoing ETF speculation. He suggests that technical indicators are pointing to a potential price correction for BTC in the coming weeks. However, he remains confident about the eventual approval of spot-based ETFs for both Bitcoin and Ethereum.

🔮 Future Outlook and Recommendations

The potential approval of BTC and ETH spot ETFs is a significant development for the crypto market. If approved, these ETFs could bring substantial inflows of institutional and retail money into the crypto space. Investors should closely monitor the SEC’s decision regarding ETF applications.

Our Recommendations:

  • Investors should consider diversifying their portfolios by allocating a percentage to Bitcoin and Ethereum.
  • Those bullish on the crypto market should focus on Ethereum in the coming months, expecting potential outperformance compared to Bitcoin.
  • It’s crucial to stay informed about the latest regulatory decisions and market trends to make informed investment choices.

🤔 Reader’s Q&A

Q: What are the advantages of spot ETFs over futures-based offerings? A: Spot ETFs are considered superior to futures-based offerings because they directly hold the underlying asset. This allows investors to have more direct exposure to the cryptocurrency, reducing the risks associated with futures contracts.

Q: What impact can ETF approval have on the crypto market? A: ETF approval can lead to increased adoption and recognition of cryptocurrencies as legitimate assets. This could result in significant inflows of institutional and retail money, driving up prices and expanding the market.

Q: When will we know if the SEC approves BTC and ETH ETF applications? A: The SEC’s decision on ETF applications is eagerly anticipated. While there is no official timeline, reports suggest that approval could come as soon as Friday for BTC applications. However, an exact date for ETH applications is still unclear, with predictions pointing to around May.

Q: What factors could lead to a delay or rejection of ETF applications? A: The SEC carefully evaluates ETF applications, considering factors such as market manipulation risks, custody solutions, and investor protection. If any concerns related to these factors arise during the review process, it could result in a delay or rejection of the applications.

📚 References

  1. Bitcoin Price | BTC Price Index and Live Chart – Blocking.net
  2. Caused Bitcoin’s 10% Crash? Matrixport, Jim Cramer, Leverage – Cyber Magazines
  3. Bitcoin Price Prediction: ETF Approval Date Approaches, Quick Pump to $50,000 Incoming? – Cyber Magazines
  4. Bitcoin ETF Approval Tipped as “Sell the News” Event by CryptoQuant – Cyber Magazines
  5. List: Wall Street Giants Seeking to Launch Bitcoin ETF – Cyber Magazines
  6. Bitcoin Retract to $36K? Uptrend Resumes, QCP Capital Says – Blocking.net

Remember to share this article with your friends and colleagues who are interested in cryptocurrencies and ETFs. Together, we can navigate the exciting world of digital assets! 😄💰

Disclaimer: The information provided in this article is for informational purposes only. It should not be considered investment advice. Cryptocurrency investments carry risks, and readers should do their own research and consult with a financial advisor before making any investment decisions.

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