What Happened This Week With Bitcoin ETFs: Is the Market Ready for Approval?

There has been a lot of activity in the crypto market this week regarding the approval process of ETFs and related developments. Here are the events that took place before the SEC's decision on spot Bitcoin ETFs...

The crypto market has reached the final stage for the decision on the highly anticipated spot Bitcoin ETFs. The SEC needs to make the ARK Invest & 21Shares decision by 10 January. Market experts predict that ARK Invest, along with other companies, is highly likely to approve their applications.


Market Experts Have Positive Opinions

Experts predicted that the potential approval of the Bitcoin ETF could create a "buy the rumour, sell the news" effect. However, significant fund inflows in recent weeks ($150 million) and Bitcoin's trajectory seem to contradict this claim. In its latest analysis, K33 Research stated that the "sell the news" scenario that seemed likely last week has now become less likely. K33 analysts made the following comment: "The liquidation on 3 January significantly improved the market situation. The effect of long liquidations has decreased. Following the ETF announcement, the market has now become more robust for profit-taking." Steven McClurg, co-founder and CIO of Valkyrie Investments, also reported today that he expects Spot Bitcoin ETFs to be approved by the end of the business day on Wednesday. Bloomberg analysts have also published various reports on the subject in this process. Analysts, who assess the likelihood of the SEC approving Bitcoin ETFs as 95%, state that the likelihood of ETF proposals being rejected after companies' S-1 update applications is very low.


Companies Submitted Their Last Updates

On Monday, January, companies applying for the spot ETF updated their latest S-1 filings. These firms include Valkyrie, Wisdomtree, Invesco/Galaxy, iShares, Ark/21Shares, VanEck and Fidelity. According to Bloomberg's earlier reports, the SEC is expected to vote and approve these filings soon.


And today BlackRock and VanEck Submitted S-1 Updates in Response to the SEC;

BlackRock and VanEck made updates to their applications following comments from the SEC. These updates show that these two firms are among the potential issuers that the SEC commented on in the last 24 hours. The updated documents include explanations on issues such as minimising shareholder losses in the event of ETF bankruptcy and preventing conflicts of interest among authorised participants.


Standard Chartered's 2025 Bitcoin Forecast

Standard Chartered Bank predicts that the Bitcoin price could reach $ 200,000 by the end of 2025 if Bitcoin ETFs are approved. According to the bank, the approval of spot Bitcoin ETFs could enable the Bitcoin price to first reach $100,000 by the end of 2024. If the expected investments in ETFs materialise, the price could approach $ 200,000 by the end of 2025.


Gary Gensler's comments about X

SEC Chairman Gary Gensler warned crypto investors about the potential risks awaiting crypto investors in a headline published from X, pending the final decision on spot Bitcoin ETF applications. Gary Gensler continued his warnings today. Continuing his posts through X, Gensler said, "Be careful if you are considering an investment involving crypto assets. Crypto-asset securities can be marketed as new opportunities, but they also harbour serious risks."


Exciting Anticipation Continues in the Crypto World

The approval of spot Bitcoin ETFs and the possibility of Bitcoin exceeding its highest level since April 2022 and rising above $ 50,000 caused the Crypto Fear and Greed Index to rise to 76, entering the "extreme greed" zone. This week, the crypto market has gone through a very active period with the approval process of ETFs and related developments. today, any decision by the SEC is eagerly awaited.