An important claim was made at a time when the excitement for the first spot Bitcoin ETF in the USA was at its peak and people were wondering when it would be approved. The US Securities and Exchange Commission (SEC) is expected to approve at least one of 13 Bitcoin spot ETFs on January 10, according to sources familiar with US news site Axios.
Spot Bitcoin ETFs Will Be Approved on January 10
The U.S. Securities and Exchange Commission (SEC) is expected to approve multiple spot BTC ETFs on Jan. 10, according to three sources with knowledge of Axios. Officials added that the approved ETFs will be listed on the stock exchange and begin trading on January 11.
The SEC will end the 10-year waiting period by approving the first spot Bitcoin ETF in the USA. Therefore, an exchange-traded fund that invests directly in the largest cryptocurrency and holds BTC can earn much more than a futures ETF that tracks the BTC price.
What Do Experts Say About ETF Approval?
There is currently a general expectation in the crypto world that if the Spot BTC ETF is given the green light, it will be a “buy on the rumor, sell on the news” situation and the approval will cause the price of the largest cryptocurrency to drop. Despite these expectations, the ETF’s approval is likely to lead to market gains in the long run. The bullish scenario here is based on increased retail and institutional Bitcoin demand through regulated spot ETFs and decreased Bitcoin supply, with the 4th block reward expected to be halved in April.
Oppenheimer’s Owen Lau warned that capital flows are an important signal for the market and initially weak capital flows could put selling pressure on Bitcoin prices. Bitwise pointed to research showing that only 39% of financial advisors expect to launch a spot ETF this year, while 88% believe the approval of spot ETFs would be a big positive.
Acheson & Onramp Invest CEO Tyrone Ross explained that he initially expected a disappointing market reaction, but that it will be an interesting situation in the long run as financial advisors become more knowledgeable about the crypto class. JPMorgan’s Worthington said the rally was initially driven by expectations for the launch of crypto spot ETFs, specifically the Bitcoin spot ETF, and added that if volume and prices continue to increase, higher activity could support the rise, adding that it was possible.
