SEC decision on bitcoin ETFs is imminent. Is this an opportunity to sell the news? Or not…
Bitcoin ETF
BlackRock, Fidelity et al have until today to submit last-minute revisions to their Bitcoin ETF applications.
The US Securities and Exchange Commission has until January 10 to rule on at least one of these ETF applications. Insiders believe the SEC will announce a general green light on that date.
But disappointment is not impossible since. The SEC has been rejecting all ETF applications for 12 years now. However, the pressure is now enormous, especially since BlackRock entered the fray.
A failure to accept would certainly result in a drop of around 10% in bitcoin. This was recently the case after Matrixport strongly suggested that ETFs would be put off (with a 20% drop in the mix).
Otherwise, 30,000 billion dollars could be invested in bitcoin. These are funds managed by all investment funds wishing to launch an ETF.
BlackRock, Fidelity, Grayscale, Ark, Bitwise, Vaneck, WisdomTree, Invesco/Galaxy, Valkyries, Global X, Hashdex, Franklin Templeton.
Note that all of these funds will hold the ETF’s bitcoins on the Coinbase exchange (Vaneck at Gemini). Only the Fidelity fund will truly hold its own bitcoins.
Obviously, we should not expect that 100% of these 30,000 billion will flow into bitcoin. However, an allocation of 2.5% would be enough to double the market capitalization of bitcoin.
A single bitcoin would then be worth almost $100,000. Knowing that other American funds could decide to invest in these ETFs. In these conditions, is it wise to “sell the news”?
Some think so… The following tweet shows that shorts are piling up. In other words, traders are anticipating a rebuff from the SEC or that traders will sell the news.
CC15Capital believe that these shorts will be liquidated as soon as bitcoin enters the $44,500 – $45,200 zone.
Your servant thinks for his part that it is enormously risky to play the decline in the very short term at the dawn of the arrival of institutional investors. Hold and buy the dip!
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