03.01.2024 – Here we go: the authorisation of spot index funds for e-currencies is probably imminent. The bulls are scurrying about – one investor is hoping for a gigantic wave of capital totalling 30 trillion dollars. Others are more cautious.
Traders, listen to the signals: if what some augurs believe is true, then the first spot ETFs will be authorised in the next few days. The two journalists James Seyffart and Eric Balchunas, both from Bloomberg, recently considered it possible that the Securities and Exchange Commission (SEC) will make a decision on Bitcoin funds as early as 10 January. A statement on ether funds will not be made until May. This means we could see a mega rally in BTC, here is the weekly chart.
Quelle: Bernstein Bank GmbH
However, there will also be traders who sell in the middle of the wave. Star investor Cathie Wood from ARK Invest recently warned of just such a “sell the news”. We believe that all those who fanned the flames recently could go short.
30 trillion or just 2.4 billion?
Michael Sonnenshein, for example, head of Grayscale Investments. He said a few weeks ago on CNBC that he expected “$30 trillion worth of advised wealth” to pour into the market. In other words, 30 trillion dollars.
It can also be a number smaller: “CoinTelegraph” reported, citing unnamed experts, that new ETFs could eclipse the current total market of around 50 billion dollars in crypto-based products. These are currently mainly ETPs – exchange-traded products, i.e. funds that are mostly based on futures.
Fund manager Van Eck even assumes that the authorisation of spot ETFs will only bring around 2.4 billion dollars into the market. We are curious.
Deadline 29 December
The fact is: according to press reports, 14 fund providers want to offer spot BTC ETFs in the future. At Christmas, Fox Business News and Reuters reported that the SEC had set a deadline of 29 December for the fund companies to complete Annex S-1 in their application for approval. This concerns the mode of payment in cash and the obligation to name all parties involved in deals.
According to the Reuters report, the SEC last met with managers from at least seven investment companies on 21 December, including ARK Invest, Grayscale, Blackrock and 21 Shares. Representatives of Nasdaq and the Chicago Board Options Exchange are also said to have been present.
The upshot of all this is that things are getting exciting for cyber currencies. We will keep you up to date on developments!
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