The recent approval of the spot Bitcoin BTC -2.15% ETF has generated excitement in the market. The volatile nature of the approval process for all spot Bitcoin ETFs has been highlighted. However it’s worth noting that the market had already factored in this news and as a result Bitcoin did not experience a surge. On the day of trading for the Bitcoin spot ETF there is an anticipated inflow of $4 billion possibly originating from BlackRock. Its been over six months since the application was submitted in June year marking a significant shift since the first submission of a spot Bitcoin ETF application back in 2013.
SEC Chairman Gensler explicitly stated that approving the spot ETF signifies that they have managed to mitigate the impact caused by the Grayscale case, which had consequences. Despite this approval it doesn’t imply that the SEC fully endorses Bitcoin or other cryptocurrencies; they still recognize them as risk and volatile assets. Furthermore it’s crucial to note that this approval is specific to Bitcoin related ETP products and does not extend to types of crypto asset securities or alter their legal status.
Before obtaining approval there was an incident involving false news about official endorsement of the Bitcoin spot ETF. This misinformation led to price fluctuations in Bitcoin similar, to last years Quintelli graph event.
In addition Matrixports report on January 3rd of this year also suggested that the Bitcoin ETF would likely face rejection in January indicating signs of price manipulation. Interestingly there was a leak and exploitation of the SECs Twitter account. However those false messages didn’t gain credibility. It’s still important for the market to exercise caution regarding the risks and volatility associated with cryptocurrencies while keeping a watch on their development. This seemed to be a planned move by Gensler showing strong intentions on their part.
On October 24th year the SEC emphasized the importance of account security and setting strong passwords. However they themselves demonstrated vulnerability than two months later. While it is believed to be an act rather than an actual theft it appears to have been done with the aim of manipulating the market for profit.
According to an insider at the SEC there was significant internal conflict within the organization when applicants submitted their requests for a Bitcoin spot ETF. Gensler faced pressure and frustration as he hesitated to approve it due, to seemingly illogical reasons. Nevertheless when influential external capital forces and major Democratic Party sponsors exerted pressure he ultimately had no choice but to give approval despite his reluctance.
When discussing the approval of the Bitcoin spot ETF it is important to mention the increase in Ethereum ETH -0.27% prices. While the Bitcoin spot ETF is a small part of the bigger picture the real excitement lies in Bitcoins halving event. Moreover Ethereum should not focus on Bitcoins halving but also consider launching a spot Ethereum ETF.
With the rise in Ethereum prices various layer 2 projects like Optimism, Polygon MATIC -2.29% and Arbitrum are performing well. Additionally Ethereums upcoming Cancun upgrade holds promising opportunities for advancements in layer 2 projects.
After experiencing a dip below the M200 moving subsequently bouncing back Ethereum has now surpassed $2,600. According to data from Coinclass there have been losses in Ethereums recent airdrop over the past 24 hours. On the hand those who entered long positions at $2,200 have enjoyed substantial profits. The focus has shifted from Bitcoin to Ethereum. Might soon expand to include other cryptocurrencies such as Solana SOL -4.96%, Chainlink LINK -4.00% or companies like Ripple. There is speculation about combining major cryptocurrencies like Solana, Bitcoin, Ethereum Avalanche AVAX -3.88% into an ETF structure. If Bitcoin gains recognition as a legitimate commodity rather, than being seen as a scam asset we can expect more capital inflow into the cryptocurrency market which will further stimulate its growth.
The recent approval of the Bitcoin spot ETF and the possibility of approval for an Ethereum spot ETF suggest that the cryptocurrency market is becoming more mature. It’s clear that an increasing number of individuals are becoming involved with cryptocurrencies, which highlights the growing acknowledgement from bodies, towards emerging asset classes. This recognition not contributes to a certain level of market stability but also attracts more traditional investors into the mix.