Speculation is rising within the cryptocurrency community regarding the expected decision on a Bitcoin exchange-traded fund (ETF) this week. ARK 21Shares awaits a decision on Wednesday, intensifying discussions on the potential effects of both approval and rejection on Bitcoin’s price.
Forecasts vary, with prices expected to rise on approval, and possible declines for both approval and rejection. However, one analyst questions the rationale behind people “shorting” Bitcoin ahead of the decision.
Controversy rages over approval of a Bitcoin exchange-traded fund
On X (formerly Twitter), cryptocurrency commentators are discussing the potential impact on Bitcoin’s price following an expected decision from the US Securities and Exchange Commission (SEC).
The SEC is scheduled to submit a decision to ARK 21Shares regarding its Bitcoin exchange-traded fund application on January 10. The deadline for other asset managers will follow shortly after.
Alex Becker explains to his 922,000 followers on
If anything, he explains, it’s just opening up assets to a lot of wealthy individuals. Furthermore, these individuals may have never invested in cryptocurrencies. This is due to its unconventional ways of doing this, as in a stock exchange, as opposed to a stock exchange:
“It allows the world’s biggest moneymakers to actively invest in a way that is convenient and easy for them.”
At press time, Bitcoin was priced at $44,239.
Read more: How to prepare for a Bitcoin ETF: a step-by-step approach
Meanwhile, Dan Webb, chief engineer at Swan Bitcoin, points out that even if the price falls if the ETF is approved, the downside will not be as severe as the potential upside, in the event of positive news.
“What is the risk reward of shorting Bitcoin this week? Even if the ETF is approved and it is a ‘sell the news’ event, what is the potential upside for short trades? 5-10% (assuming no Existence of leverage)?
Mati Greenspan, founder and CEO of Quantum Economics, told BeInCrypto earlier this month that he believes SEC Chairman Gary Gensler is unlikely to want to disappoint his allies by approving the ETF:
“I doubt very much that Gary Gensler would approve any type of crypto-related ETF. “I think if it were within his power, he would do everything he could to delay crypto innovation for the benefit of the big bankers who are beholden to them.”
Read more: Who owns the most Bitcoin in 2024?
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