Crypto News- ETF deadline week unfolds: The buzz around the U.S. Securities and Exchange Commission (SEC) responding to spot bitcoin exchange-traded fund (ETF) applications is reaching its peak, especially with a critical deadline for at least one application looming on Wednesday. All eyes are on the SEC, which has until Jan. 10 to give a thumbs up or down to Ark 21 Shares’ application, and speculations are rife about potential decisions on other pending applications.
Bitcoin, having soared to a 21-month high, flirting with the $46,000 mark, now finds itself in a consolidation phase, hanging in suspense for regulatory clarity. A 2% gain on Monday pushed bitcoin to $45,000 after a weekend dip to $43,400. LMAX Digital is cautioning about a possible significant price nosedive if the SEC rejects spot ETFs this week, but they are optimistic that any pullbacks will find robust support above $30,000 throughout 2024. Conversely, an approval could set the stage for an immediate 10%-15% rally, as projected by LMAX.
ETF Deadline Week Unfolds in First Mover Americas
The odds of a spot bitcoin ETF getting the green light in the U.S. have surged to over 90%, at least according to two notable analysts at Bloomberg. However, on the flip side, participants on the Polymarket betting platform seem to be losing some of their optimism, downsizing the odds to 85%. In a post-Friday filing reflection, Bloomberg’s ETF analyst, Eric Balchunas, sees a mere 5% chance of the SEC rejecting proposals, leaving a slim window open for unforeseen developments. Balchunas had been bullish in November with a 90% chance of approval, citing positive indicators from providers’ updated forms.
SEC’s Decision on Bitcoin ETFs Sparks Market Speculation; ARK Invest Trims Coinbase Holdings
Turning the spotlight on ARK Invest, Cathie Wood’s brainchild, the firm unloaded a hefty $20.6 million worth of Coinbase (COIN) shares on Friday, distributed across three of its ETFs. With COIN closing the previous week at $153.98, this move comes amid ARK Invest’s commitment to not letting any individual stock surpass a 10% weighting in an ETF’s value.
Despite COIN’s impressive doubling in price during the final quarter of 2023, ARK has been consistently shedding Coinbase shares. The Innovation ETF (ARKK) bears the brunt of this with a significant holding of over $850 million worth of COIN. The recent sale has brought its weighting down to 10.04%, signaling a potential end to the sales from ARKK, unless there’s another substantial surge in Coinbase’s share price.
Leave a comment