As a Bitcoin (BTC) Exchange Traded Fund (ETF) decision approaches, aspiring crypto businesses, investors, and regulators are taking decisive steps to best prepare for the unknown.
Total weekly outflows from various Bitcoin short selling products exceeded $1 million, sending the Crypto Fear & Greed Index into the “Extreme Greed” zone. Furthermore, Standard Chartered predicts that Bitcoin will reach $200,000 by 2025 if the Spot BTC ETF is approved.
Bitcoin Short ETP records $1M weekly outflow, hopes for spot BTC ETF approval
Digital asset investment products, or exchange-traded products (ETPs), saw inflows of $151 million in the first week of 2024, while outflows from short Bitcoin positions totaled more than $1 million. Ta.
While many market experts had previously predicted that the potential BTC ETF approval could be a “buy the rumor, sell the news” event, the latest digital asset investment flow data contradicts that claim. There has been significant capital outflow in the past few weeks.
Bitcoin index tilts towards 'extreme greed' as market holds breath for ETFs
The Crypto Fear & Greed Index showed “extreme greed” market sentiment among crypto investors. According to the Crypto Fear & Greed Index, Bitcoin's market sentiment score is 76 out of 100, its highest score since Bitcoin hovered around a high of $69,000 in mid-November 2021. .
The Bitcoin Sentiment Index briefly tilted towards “extreme greed” on December 5th with a score of 75. Bitcoin passed the $40,000 milestone on December 4th and soared to $44,000 the next day.
Before that, the last time the index turned into “extreme greed” was on November 11, 2021, at 77 points. According to the data, Bitcoin reached an all-time high just one day earlier.
Standard Chartered to offer $200,000 in Bitcoin by late 2025 if ETF approved
Multinational bank Standard Chartered predicts that Bitcoin could reach nearly $200,000 by the end of 2025 if the BTC ETF is approved and succeeds as an investment product.
Standard Chartered posted monthly calculation! $200,000 coming pic.twitter.com/IQueMhjgiP
— Lark Davis (@TheCryptoLark) January 9, 2024
“If ETF-related inflows materialize as expected, end-2025 levels could approach $200,000,” said Jeff Kendrick, head of digital assets and Suki Cooper, precious metals analyst at Standard Chartered. “We believe that there is,” he said in a report on January 8. Shared on X (formerly Twitter).
The bank's price forecast assumed that US-listed spot Bitcoin ETFs would hold between 437,000 and 1.32 million BTC by the end of 2024. The company estimates this equates to an inflow of $50 billion to $100 billion.
Hashdex Spot Bitcoin ETF Excluded from Amended S-1 Filing — What Does This Mean?
Several asset management companies filed S-1 form amendments on January 8 as part of the process to obtain approval to list Spot BTC ETF shares on a U.S.-based exchange, but crypto asset management company Hashdex did not issue an amended form.
Also, as others have pointed out, there are no updates from here @HashDex still. However, they differ from the rest only in that they are the only products on this list that are already managed as ETFs. So I'm not going to read too much into that yet.
— James Seyffert (@JSeyff) January 8, 2024
Bloomberg ETF analyst Jeff Seifert said HashDex's Bitcoin ETF application was different from other companies' applications in that it was requesting to convert an existing crypto futures ETF. Hashdex filed an application with the SEC in August proposing a futures investment vehicle that could also hold spot Bitcoin.
Gary Gensler issues warning on cryptocurrencies ahead of spot approval of Bitcoin ETF
U.S. Securities and Exchange Commission Chairman Gary Gensler has a few things to keep in mind for crypto investors as many asset managers await final word on approval or denial of Spot BTC ETF applications. I called on them to do so.he later prompted Although he did not comment on the possibility of ETF approval, he maintained that there were “significant risks” and expressed a cautious stance on investing in cryptocurrencies.
1⃣ Companies offering crypto asset investments/services may not comply with applicable laws, including federal securities laws. Investors in cryptographic securities should understand that they may be deprived of important information and other important protections in connection with their investment.
— Gary Gensler (@GaryGensler) January 8, 2024
Despite the uncertainty surrounding the SEC's decision to approve one or more BTC ETFs at the same time, Valkyrie, WisdomTree, BlackRock, VanEck, Invesco and Galaxy, Grayscale, ARK Invest, 21Shares, Fidelity, Bitwise, Franklin Templeton is filing the application.
Explore “Gary Gensler's ETF Dilemma” in the latest comic! As ETF decision day approaches, can Gary Gensler keep saying no? Share your thoughts below! pic.twitter.com/ujSOkz0Sg6
— Cointelegraph (@Cointelegraph) January 4, 2024
The Jan. 8 S-1 filing was expected and was part of the SEC's deadline following a number of 19b-4 filings on Jan. 5. Both signals that the SEC is moving forward in allowing crypto ETFs to be listed on U.S. exchanges, which is what is happening. Approval is not guaranteed.
Update (January 9, 5:36 PM UTC): This article has been updated to include the January 9 X post by SEC Chairman Gary Gensler.
