1 min readCould Spot Bitcoin ETFs soon be approved?
Until beginning of this week, Bitcoin seemed to be closely tracking the December rate hike expectations - that was until the Bitcoin ETF approval tweet mistake by Coin Telegraph. A real decoupling from the rates narrative has occurred for now, largely due to the increasing likeliness for the approval of a spot Bitcoin ETF in the US.
The market reaction we’ve seen is an interesting test case for how prices are likely to react when the spot ETFs are approved — and this is likely why the price remains elevated today.
There is increasing evidence that an ETF will be approved: ETF issuers are in communication with the SEC regarding recurring themes in spot BTC ETF application amendments. This includes specifying custodial arrangements in detail, mechanics around hard forks, valuation/pricing sources and adherence to GAAP, risk disclosure around regulatory uncertainty and other points – all typical queries raised when ETF applications are progressing well.
The Grayscale case conclusion will be in next few weeks, a no valid rejection order would mean they could potentially launch an ETF earlier than its competitors, but we believe they are most likely to all be approve at the same time at some point in January 2024.
That’s it for this week - follow CoinShares for more insights.
