A Crucial Week Begins For Bitcoin

(MENAFN- B2Press) The Cryptocurrency ecosystem started the year 2024 with fluctuations due to developments in Bitcoin-indexed ETFs. As markets focused on the first anticipated decision on the spot bitcoin ETF schedule between January 7-10, attention is turned towards the U.S. Security Exchange Commission .

TURKEY -
The first headline on the agenda for the cryptocurrency ecosystem in January 2024 has been discussed around the Bitcoin ETF (Exchange Traded Fund) since the beginning of the year. As the anticipated decision date approaches for the first spot Bitcoin ETF that will trade on the spot market, allowing institutional and individual investors to use a regulated financial product for Bitcoin, attention is turned to the U.S. Securities and Exchange Commission

Gate's Global Growth Director,
Kafkas Sönmez, who shared his assessments on the matter, stated,“The week of January 8th is crucial for the cryptocurrency ecosystem. The SEC is expected to announce its decision on the Ark 21 Shares' Bitcoin ETF application by January 10th at the latest. The cryptocurrency markets are focused on the potential decision between January 8th and 10th.

Market reactions to the anticipated developments regarding the transformation of Bitcoin into a broadly accepted investment instrument through Bitcoin ETF have been observed since the first day of the year. Market expectations for approval from the SEC led the price of the world's largest cryptocurrency to rise above $45,000 from January 1st, based on market value. However, last Wednesday, opinions suggested that the decision on Matrixport's spot Bitcoin ETF would be postponed to the second quarter of 2024, and all applications would be rejected in January, wiping $400 million from the market within two hours. While the Bitcoin price dropped to around $40,000, it recovered in the following days.

Kafkas Sönmez, stating that the market will likely maintain its volatile movement until the first decision from the SEC, expressed optimism in the general atmosphere. He mentioned,“Following this significant drop, Fox News claimed that SEC lawyers met with exchange representatives, and initial meetings were held. There is high expectation in the market for the first positive decisions to come in January. Fear and appetite indices reflect investor sentiment and confirm the optimistic atmosphere.”

Highlighting that among the organisations that have applied to the SEC for a spot in Bitcoin ETF so far are leading asset management companies such as BlackRock, Grayscale, WisdomTree, Ark Invest, VanEck, and Invesco Galaxy, Gate's Global Growth Director Kafkas Sönmez, stated,“Developments are not limited to applications. Leading banks on Wall Street, such as JP Morgan, Cantor Fitzgerald, and Jane Street, have partnered with asset management companies to become authorised participants for potential spot Bitcoin ETFs. We also know that Goldman Sachs has taken a similar step. This news increases hopes for a decision expected to impact the price of Bitcoin positively. The market is now more ready than ever to price in the approval news. Since it is believed that the SEC has no room for further delays, the market eagerly awaits the final deadline for the first decision, January 10th.

Gate Global Growth Director Kafkas Sönmez, concluded his assessments with expectations regarding the potential impacts of the approval decision:

“SEC'den gelecek ilk onay, diğer varlık şirketlerinin başvurularının da onaylanacağına işaret edecek. Spot Bitcoin ETF, yatırımcılar için Bitcoin varlığına yatırım yapmadan, Bitcoin endeksli bir fonla birikimlerini değerlendirmelerine olanak tanıyacak ve bu sayede Bitcoin'in erişim alanını güçlendirecek. Galaxy'nin çeşitli hesaplamalara dayanan tahminleri, spot Bitcoin ETF'sine 1 yılın sonunda 14 milyar, ikinci yılda 27 milyar, üçüncü yılda ise 39 milyar dolarlık bir giriş öngörüyor. Bu tahminler, özellikle kurumsal yatırımcıların bu yeni varlığa ilişkin iştahını kabartıyor.”

“The first approval from the SEC will signal the approval of other asset management companies' applications as well. Spot Bitcoin ETF will allow investors to capitalize on their savings through a Bitcoin-indexed fund without directly investing in Bitcoin, thereby strengthening the accessibility of Bitcoin. Galaxy's various calculations-based forecasts predict an influx of $14 billion in the first year, $27 billion in the second year, and $39 billion in the third year for the spot Bitcoin ETF. These forecasts particularly stimulate the appetite of institutional investors for this new asset."

Contact: Tülay Genç | [email protected] | +31 30 799 6022

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