Funds Cash In Ahead of Spot Bitcoin ETF Approval. Will BTC Pull Back?
As the crypto market awaits the SEC's approval of Bitcoin ETFs, the world's largest asset managers cash in through their existing blockchain and crypto-related exchange-traded funds (ETFs). However, the manner and timing of their profits send confusing signals to the crypto community about the volatility of Bitcoin's price.
Crypto ETFs, such as Cathie Wood's ARK Next Generation Internet ETF (ARKW), BlackRock's Blockchain and Tech ETF, Fidelity and Bitwise's ETFs, and VanEck's Digital Transformation ETF, have all seen double-digit annual return rates. The growth of crypto-related stocks, such as Coinbase, Grayscale Bitcoin Trust, MicroStrategy, and Marathon Digital, outperformed Bitcoin's 150% growth.
Ark Invest, an asset manager behind one of the world's most actively traded and closely followed crypto ETFs, made the most turbulence recently by heavily offloading Coinbase Global (COIN) and Grayscale Bitcoin Trust (GBTC) shares. The Florida-based fund sold roughly over $270 million worth of Coinbase shares in December and more than 588,000 shares since June.
Despite major asset managers expressing confidence in crypto mining companies, their Coinbase and Grayscale Bitcoin Trust share selloffs send mixed signals to the broader crypto community. With SEC decisions expected to be announced within the first quarter of 2024, the crypto market worries that ETF approvals would be "sell the news" events that pull Bitcoin's price down, at least for the short term.
The crypto market is awaiting SEC approval for Bitcoin ETFs, with asset managers like Ark Invest heavily offloading Coinbase Global and Grayscale Bitcoin Trust shares. These selloffs send mixed signals to the crypto community, as the market worries that ETF approvals could be "sell the news" events that pull Bitcoin's price down, at least for the short term. Crypto-related stocks outperformed Bitcoin's 150% growth.
#Bitcoin 💰 update (Daily)
Today is the Most important ⚠️ day for the #Bitcoin, as we need today's Daily close above $41K.
As today's daily close ❕ is also a monthly close as well as weekly close & a yearly close too.
So, if Bitcoin closes today ✔️ above $41K then we have chance to see the Breakout of Bullish rectangle which is forming in Bitcoin, in the Late January📆.
Everyone is talking about #BitcoinETF & no one is talking about the first smart contract blockchain Ethereum, in my opinion, if Spot ETF goes live on the Stock Exchange one of the few coins to skyrocket will be Ethereum price, we might see ETH price above 10,000 dollars.