Bitcoin ETF Decision Sparks Market Moves and a Forecast of $200,000 BTC by 2025
Summary:
As the decision on Bitcoin (BTC) exchange-traded funds (ETFs) nears, Bitcoin short investment products see over $1 million weekly outflows, and "extreme greed" is noted on the Crypto Fear & Greed Index. In conjunction, Standard Chartered predicts Bitcoin could reach $200,000 by 2025 if ETFs are approved. The process of approval moves forward with asset managers amending their S-1 forms, but SEC Chair, Gary Gensler, warns of possible investment risks. Despite no guarantee of approval, ETF applications from major firms are under process.
As the verdict on Bitcoin (BTC) exchange-traded funds (ETFs) looms, future-oriented crypto corporations, investors, and administrative officials are making robust preparations for the uncertain future. Bitcoin short investment stocks saw total weekly withdrawals surpassing $1 million, and the Crypto Fear & Greed Index is indicating "extreme lust" territory. Furthermore, Standard Chartered has made a forecast that Bitcoin could hit $200,000 by 2025 if the BTC ETF gets the green light.
Bitcoin short ETPs noted a weekly drain of $1M, in anticipation of BTC ETF endorsement. Digital resource investment commodities, or exchange-traded commodities (ETPs), saw contributions of $151 million in the initial week of 2024, while departures from Bitcoin short stances totaled more than $1 million.
The prediction made by many market experts earlier that the approval of the BTC ETF could be a "purchase the rumor, sell the news" occurrence has been debunked by the latest crypto asset investment flow data, which shows significant outflows over the past several weeks.
The Crypto Fear & Greed Index shows a shift towards "extreme lust" as market watchers eagerly await the ETFs. According to the Crypto Fear & Greed Index, Bitcoin's market sentiment score is now at 76 out of 100 — its highest score since Bitcoin was hovering near its peak value of $69,000 in mid-November 2021.
Multinational financial institution Standard Chartered believes that approval and success of BTC ETFs could push Bitcoin to nearly $200,000 by the close of 2025. Standard Chartered’s report on January 8 estimates that between 437,000 and 1.32 million BTC will be held in US spot Bitcoin ETFs by the end of 2024. This is anticipated to translate into inflows worth between $50 billion and $100 billion.
Despite many asset managers amending their S-1 forms on January 8 as part of the process to get approval for shares of a spot BTC ETF fund on U.S.-based exchanges, Hashdex did not issue an amended form.
The SEC Chair, Gary Gensler, has advised crypto investors to remain vigilant as several asset managers seek final word on the approval or denial of their spot BTC ETF applications. He also sounded a cautionary note on crypto investments, outlining the "serious risks" involved but stopping short of directly referring to the potential ETF approval.
Although there is uncertainty surrounding the SEC’s decision to approve one or many BTC ETFs simultaneously, applications from Valkyrie, WisdomTree, BlackRock, VanEck, Invesco, Galaxy, Grayscale, ARK Invest, 21Shares, Fidelity, Bitwise, and Franklin Templeton are in process.
The Jan 8 S-1 filings were part of the SEC's deadline following numerous 19b-4 filings on Jan 5. These filings mark progress in the SEC's potential allowance of crypto ETF listings on U.S. exchanges, but they do not guarantee approval. An update on the matter was posted on Jan 9 by the SEC Chair, Gary Gensler.
Published At
1/9/2024 8:38:24 PM
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