11.01.2024 – Now it’s really done: the US Securities and Exchange Commission (SEC) has granted approval for the authorisation of spot-based index funds for Bitcoin. And how is BTCUSD reacting? Not at all. The music is playing on Ether.
Milestone, revolution, turning point, breakthrough – the financial media are overflowing with superlatives in their assessment of the authorisation. And Bitcoin? It’s not really getting anywhere, as shown in the four-hour chart.
Source: Bernstein Bank GmbH
Yet even the rather conservative “Wirtschaftswoche” has just gone out on a limb in its online version: “A lot of money should soon be flowing into the sector – and the Bitcoin price should continue to rise.” In view of so much optimism, the question arises as to whether all the bulls are already in the market. And whether perhaps, perhaps there will be a countermovement first.
The SEC remains sceptical
The question now is also whether fresh money will flow from conservative savers to large fund companies that they trust. Or whether investors who hold Bitcoin directly will prefer to put their money in an index fund because they assume that these will be better able to deal with the regulatory authorities in the event of repression.
Perhaps the market’s muted reaction is also due to the rather lukewarm approval of the Securities and Exchange Commission. Their verdict was quite close at 3:2. And SEC Chairman Gary Gensler once again confirmed himself as an enemy of cryptos, which could point to new problems for investors. Specifically, he stated that the SEC does not approve of digital assets with its authorisation and does not recommend them: “Investors should remain cautious about the myriad risks associated with Bitcoin and products whose value is tied to crypto.”
Accordingly, star investor Cathie Wood was rather disgruntled by Gensler’s statement immediately after the announcement of the authorisation for around a dozen funds that are allowed to start trading with immediate effect. “He just denigrated the whole crypto space. I couldn’t believe it,” Wood said in an interview with Bloomberg Radio. “This is part for the course in disruptive innovation.”
Ether is taking off
However, the bullish investor community has long since moved on. And it pays homage to Ether. Its little brother is set to be authorised as a spot ETF in May. Now the party is on, here is the four-hour chart.
Source: Bernstein Bank GmbH
We hope you had the right instinct – and we will of course continue to keep an eye on the situation with e-currencies. Bernstein Bank wishes you successful trades and investments!
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