Wed. May 22nd, 2024
Worldcoin


With the deadline of January 10 looming for the U.S. Securities and Exchange Commission (SEC), tension surrounds Bitcoin (BTC). The approval of a Spot exchange-traded fund (ETF) is at stake, but the road to approval is fraught with challenges and administrative work.

SEC Under Pressure

  • Time pressure on the SEC: Eleanor Terett of FOX Business highlights the challenges facing the SEC. With a plethora of recent changes in the submitted S-1 forms, the SEC must conduct a thorough review. This time pressure is akin to the lengthy process for the approval of Ethereum (ETH) futures last October.

SEC Radio Silence

  • Radio silence from the SEC: Rumors abound that major asset managers like BlackRock are currently receiving little information from the SEC. The holiday leave of SEC staff may further delay decision-making, adding extra pressure.

Possible Combined Approval

  • Combined approval for multiple applications: Speculation suggests that the SEC may review and approve multiple ETF applications simultaneously. This complex process requires time and careful evaluation, potentially prolonging the overall approval process.

Economist’s Warning

  • Skepticism from economist Alex Krüger: Despite optimism, economist Alex Krüger warns of potential volatility after ETF approval. He suggests that, despite an initial price increase, Bitcoin could significantly decrease within two weeks of approval. Investors are reminded of the potential risks and opportunities of this significant market development.

Conclusion: Despite anticipation for approval, both investors and the market remain vigilant to potential price movements and the impact of the SEC decision on the cryptocurrency market. The new year brings exciting developments for Bitcoin, but caution is advised.

By admin

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