According to Coin Metrics , Bitcoin rose 1.5% as several companies such as BlackRock and Grayscale filed updated filings with the US Securities and Exchange Commission (SEC), including information on fees. These updates are believed to be the final step before the SEC makes a decision on approval.
Jim Angel - Associate Professor at Georgetown University (USA) likened this to a price war, when there are too many ETF fund providers on the market, so companies are forced to offer more competitive fees.
There are currently more than 10 companies competing to establish ETF funds.
According to CNBC, the SEC must announce its decision on the ETF applications of Ark Invest and 21Shares by the deadline of January 10. Some people predict that the agency will approve multiple applications at the same time to create a fair competitive environment for companies.
Over the past 10 years, the SEC has rejected many applications for Bitcoin ETFs on the grounds that Bitcoin is fixed on unregulated exchanges, making it impossible for the agency to ensure the safety of investors. According to the Financial Times , the SEC is under a lot of pressure after losing a lawsuit over the rejection of the application of the company Grayscale.
Jay Clayton - Former SEC Chairman said that the approval of an ETF is inevitable, which would be a big step forward not only for Bitcoin but for the financial industry in general.
Many investors believe that the impact of Bitcoin ETF approval has been overestimated, but the event will still open up opportunities to attract capital from institutions with long-term vision.
Investment firm Galaxy Digital estimates that the market size of a Bitcoin ETF in the US could reach around $14 trillion in the first year after its launch, then increase to $26 trillion in the following year and $39 trillion in the third year.
Additionally, optimism surrounding Bitcoin has helped Ether gain nearly 1%. Several companies that have filed for Bitcoin ETFs have also filed for Ether ETF approval, with the SEC set to review the applications by the end of 2024.
However, stocks in the cryptocurrency sector declined. Specifically, Coinbase shares fell more than 3%, cryptocurrency mining companies such as Iris Energy and Marathon Digital both fell about 4%, while Riot Platforms shares fell less than 2%.
Source link
Comment (0)