The cryptocurrency ecosystem began the year 2024 in a volatile manner due to the evolution of ETFs indexed to Bitcoin. As markets focused on the first spot decision on the Bitcoin ETF, expected to occur between January 7 and 10, all eyes turned to the US Securities and Exchange Commission.
The first item on the cryptocurrency ecosystem's January 2024 agenda has been Bitcoin ETF (exchange-traded fund) discussions since the first day of the year. As the expected date approaches for the first decision on the Bitcoin Spot ETF, which will be traded on the spot market and thus allow institutional and individual investors to use a Bitcoin-based investment vehicle with a regulated financial product without the need to buy and sell. Bitcoin directly, all eyes are on the US Securities and Exchange Commission (SEC) translated.
Sharing his assessments on the topic, Gate.io Global Growth Director Kafkas Sรถnmez said: โThe week of January 8 is a very critical week for the cryptocurrency ecosystem. The SEC is expected to announce its decision on Ark 10 Shares' Bitcoin ETF application no later than January 21. "Cryptocurrency markets are focused on the decision that could be made between January 8 and 10," he said.
The new year started choppy in cryptocurrencies
Market reactions to the developments of Bitcoin ETFs, which are expected to accelerate the transformation of Bitcoin into a generally accepted investment instrument, began to be seen from the first day of the year. Market expectations of SEC approval had driven the price of the world's largest cryptocurrency by market value above $1,000 as of January 45. Last Wednesday, financial services company Matrixport commented that the spot decision on the Bitcoin ETF was postponed until the second quarter. 2024 and that all applications would be rejected in January erased $400 million from the market in two hours. While the price of Bitcoin fell to $40,000, it recovered in the following days.
Kafkas Sรถnmez stated that the market will continue its fluctuating movement until the first decision of the SEC, but the general atmosphere is optimistic: "After this big drop, Fox News stated that SEC lawyers met with representatives of the exchange and the first meetings were held. There is a great expectation in the market that the first positive decisions will arrive in January. "The fear and appetite indices, which show investor sentiment, also confirm the optimistic atmosphere," he stated.
Deadline January 10
Emphasizing that major asset management firms such as BlackRock, Grayscale, WisdomTree, Ark Invest, VanEck, Invesco Galaxy are among the organizations that have applied to the SEC for Bitcoin Spot ETF to date, Chief Growth Officer Gate.io Global, Kafkas Sรถnmez, said: "The developments are not limited to applications. Major Wall Street banks, including JPMorgan, Cantor Fitzgerald and Jane Street, have signed up with asset management firms to become authorized participants in potential Bitcoin spot ETFs. We know that Goldman Sachs took a similar step. This news raises hopes about the decision, which is expected to have a positive impact on the price of Bitcoin. The market is now more prepared than ever to value "Since it is believed that the SEC has no room to postpone again, the January 10 deadline for the first decision is eagerly awaited."
A new market valued at one billion dollars in 14 years
Kafkas Sรถnmez, Global Growth Director at Gate.io, concluded his assessments with his expectations on the possible effects of the approval decision:
โThe first SEC approval will indicate that other asset companies' applications will also be approved. Spot Bitcoin ETF will allow investors to invest their savings in a Bitcoin index fund without investing in Bitcoin assets, thus strengthening the reach of Bitcoin. Galaxy's predictions, based on various calculations, predict an inflow of $1 billion into the Bitcoin Spot ETF at the end of year 14, $27 billion in year two, and $39 billion in year three. . "These predictions whet the appetite of institutional investors, especially, for this new asset."
