Bitcoin Faces Uncertainty Amid Spot ETF Approval Concerns
Bitcoin (BTC) has experienced a sudden dip of 3% in response to growing apprehension in the market. This fear is rooted in concerns that approvals for spot Bitcoin Exchange Traded Funds (ETFs) might not be as imminent as previously anticipated.
Section 1: FUD Spreads as BTC Dips Following DTCC’s Ticker Removal
Bitcoin’s price rapidly fell by 3%, plummeting from approximately $34,500 to around $33,500 within minutes. This abrupt downturn came in the wake of the removal of BlackRock’s iShares Bitcoin Trust ticker, $IBTC, from the list on the US Depository Trust & Clearing Corp.’s (DTCC) website. This development was first brought to light by Barron’s journalist Joe Light.
Section 2: Industry Insights on DTCC’s Ticker Removal
Eric Balchunas, Bloomberg’s senior ETF analyst, expressed his perspective on this situation. While he admitted he wasn’t “totally shocked,” he conjectured that the removal might indicate that they “were told to or want to wait until they are days not weeks or months away from spot Bitcoin ETF approval.”
Section 3: Assessing the Impact on Spot BTC ETF Approvals
The elimination of BlackRock’s spot Bitcoin ETF ticker from the DTCC’s website list may come as a disappointment to some Bitcoin enthusiasts who were possibly anticipating swift approval. However, it is crucial to recognize that this technicality likely does not affect the timeline for spot Bitcoin ETF approval.
Market participants are inclined to maintain their confidence in the proximity of approvals for two primary reasons:
- The SEC’s recent decision to withdraw its lawsuit against Grayscale, indicating a constructive approach toward digital asset managers’ spot Bitcoin ETF applications.
- Wall Street institutions’ recent adjustments to their spot Bitcoin ETF applications, signifying collaborative efforts with the SEC for potential approval.
A growing number of analysts have been forecasting the approval of a batch of spot Bitcoin ETFs in the coming months. JP Morgan, for instance, expects approval before January 10th.
Matrixport remains optimistic, predicting that Bitcoin’s price will reach the $40,000 range. Consequently, dips like the current one observed in the Bitcoin market are likely to be perceived as buying opportunities, with the short-term bullish trend expected to persist.