22.12.2023 – While the stock market players are gradually getting ready for Christmas goose and red wine, the crypto bulls can hardly be tamed. Because it looks like Bitcoin, Ether and co. are about to ignite the next stage of the price rocket. The fuel is, of course, the authorisation for spot ETFs.
BTCUSD is in the process of forming an ascending triangle. The resistance lies at around 44,400 dollars – we are curious to see whether it will be broken soon. The picture shows the daily chart.
Quelle: Bernstein Bank GmbH
We have already discussed this topic: The crypto community is eagerly awaiting the authorisation of index funds. These are exchange-traded funds that invest directly in the spot market. This would enable the previously frowned upon cryptocurrencies to rise to the financial aristocracy and flush a lot of capital into the market. Now there are new indications that the previously closed doors will soon open.
Second meeting between Blackrock and the SEC
According to a report in CoinDesk, representatives of the investment giant Blackrock, Nasdaq and the Securities and Exchange Commission (SEC) have met for the second time in a month. According to a memo published by the website, the rules necessary for the authorisation of an ETF were discussed. Specifically, the memo stated: “The discussion concerned The NASDAQ Stock Market LLC’s proposed rule change to list and trade shares of the iShares Bitcoin Trust under Nasdaq Rule 5711(d).”
Rule 5711(d) sets forth the guidelines that apply to commodity-based ETFs as well as the requirements for compliance and the defence against fraud. The SEC is also concerned with the prevention of market manipulation, the website had previously reported. In this second meeting, Blackrock changed its application, particularly with regard to cash purchases, in order to address the SEC’s fears.
It will be exciting from 08 January
According to the well-connected financial journalist Charles Gasparino from Fox Business News, there is already speculation in the market about a decision by the SEC immediately after 8 January. It is possible that the stock exchange supervisory authority, which also fears money laundering, could install a safety net in the event of authorisation. For example, the obligation to buy tokens using the “in-cash” method: this would make the origin of the underlying more transparent – it would be clear where the fund obtains its shares from, and most traders would presumably only buy from reputable exchanges. However, the method would incur higher costs than “In-Kind” – where the underlying is traded directly against fund shares. Nevertheless, the boost to share prices would be enormous.
Ultra-bull Michael Saylor, CEO of MicroStrategy, recently said on Bloomberg TV that the approval of Bitcoin ETFs was the biggest development on Wall Street in the past 30 years – it could trigger a bull run in the coming year because the increase in demand would lead to a supply shock.
With this in mind, keep an eye on the real-time news over the festive period. We wish you a Merry Christmas and successful trades and investments!
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