Bitcoin rally cools in countdown to US spot ETF decision by SEC
The token dipped to $46,850 as of 1:05 p.m. Tuesday in Singapore after a 6.5% jump on Monday in the US to a 21-month high. Bitcoin’s new year climb now stands at 10%, contrasting with drops over the same period in stocks and gold.
The crypto market expects a green light for US spot Bitcoin ETFs by a Jan. 10 deadline. Prospective issuers such as BlackRock Inc., Fidelity Investments and Ark Investment Management updated paperwork with the Securities and Exchange Commission, and the regulator has until Wednesday to take action on at least one of the applications.
Speculators are wagering that the agency will announce a slew of decisions at once to avoid handing out a first-mover advantage. If the funds are approved, the next question is how much money they will woo. Bitcoin is up 173% in the past 12 months in a sign that traders anticipate wider adoption of the token.
Did you Know?
The world of cryptocurrencies is very dynamic. Prices can go up or down in a matter of seconds. Thus, having reliable answers to such questions is crucial for investors.
View Details»
“Participants seem to be coming around to thinking that the initial flows will actually exceed expectations,” said Kyle Doane, a trader at Arca.
Applicants amended forms on Monday in the US in a final push to offer spot Bitcoin ETF products more than a decade after the first attempt.
SEC Chair Gary Gensler has repeatedly argued that crypto is rife with fraud and misconduct. The agency cracked down on the sector following a 2022 rout and collapses such as the bankruptcy of Sam Bankman-Fried’s FTX exchange.
But the SEC last year lost a key legal fight against crypto asset manager Grayscale Investments LLC, spurring speculation that the regulator will have to
