K33 report: The approval of a spot Bitcoin exchange-traded fund (ETF) by January 10, 2024, seems highly certain, as per insights from K33 research analysts. In a report dated December 19, K33’s Head of Research, Anders Helseth, and Senior Analyst, Vetle Lunde, pointed to recent ETF updates, particularly from filers like BlackRock and ARK Invest adopting a cash-creation setup for their funds. This development, they argue, makes the approval ‘nailed on’ for January.
K33 Report: Spot Bitcoin ETF Confirmed for 2024
The report also underscored the robust price action of Bitcoin (BTC) over the past week, with spot trading volumes significantly surpassing those of previous months. Analysts attributed this to BTC’s compelling rally, drawing in new buyers and prompting profit-taking by sellers, resulting in price consolidation on heightened trading volume. Despite the strength in Bitcoin spot volumes, the report observed that open interest on BTC perpetual contracts had reached new yearly lows, indicating an absence of retail froth.
Conversely, institutional investors on the Chicago Mercantile Exchange (CME) exhibited an increased appetite for Bitcoin-related risk, with CME open interest growing by 3,100 BTC in the last week. Nevertheless, the analysts expressed skepticism about the sustainability of this trend post-approval.
The Prosperity of Altcoin Season Could Positively Impact Bitcoin
The report also highlighted several ‘pockets of euphoria‘ in altcoins such as Solana (SOL) and Bonk (BONK), which have experienced notable gains of 22%, 114%, and 338%, respectively, in the last 20 days. While many market observers often interpret such exuberant performances in altcoins as an indication that the market is approaching its peak, the analysts explained that this could actually benefit Bitcoin.
The altcoin fiesta takes the burden of froth, leaving ‘boring old bitcoin’ less exposed to liquidation cascades. In that sense, altcoins serve as a positive pressure valve for thrill-seekers, allowing for healthier leverage conditions in BTC.
Vetle Lunde
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