Shortly before a regulatory decision on spot ETFs, which is important for the crypto industry, Bitcoin started the new week with little movement. The price of the oldest and best-known digital currency was last quoted at 43,976 US dollars (40,267 euros) on the trading platform Bitfinex on Monday, which was still at Friday’s level.
There are important dates coming up this week for the cryptocurrency sector. They mark the culmination of a years-long effort to introduce so-called exchange-traded funds (ETFs) in the US that can be used to invest directly in Bitcoin (spot ETFs). Corresponding speculation has boosted Bitcoin in recent months.
SEC has until Wednesday
As Bloomberg news agency reported, potential Bitcoin spot ETF issuers have until Monday morning in Washington to make changes to their applications. The U.S. Securities and Exchange Commission itself has until Wednesday to process at least one of these filings. Investors recently speculated that the SEC would use this date to announce a slew of decisions at once.
“The market is experiencing the infamous calm before the storm,” wrote crypto expert Timo Emden of Emden Research. In the coming hours and days, “History will be made.” The crypto industry may be facing one of the most important decisions in its existence.
Spot ETF is said to have a signaling effect
Launching a Bitcoin spot ETF in the US would have a signaling effect around the world, Emden continued. This would be the bottleneck for mainstream adoption of Bitcoin and other cryptocurrencies.
According to Emden, investors should not have too much confidence in the approval if it is approved: “The launch of a Bitcoin spot ETF generally does not represent a guarantee of further incremental price gains.” It is quite possible that large addresses in particular will do this initially. so on a large scale Make money.
Investors should also consider the remaining risk of rejection or postponement, Emden warned. Anything other than approval would be a real blow to the books for stockbrokers. In this scenario, investors should be prepared for massive price disruptions.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
