As expected, volatility around Bitcoin (BTC-USD) is rising amid the latest events surrounding the potential approval from the U.S. Securities and Exchange Commission for spot BTC ETFs. The crypto bellwether is already down nearly 4% today.
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BTC had briefly soared yesterday on false reports that the SEC had given its blessing to spot ETFs. However, the regulator clarified that it had not yet given approval, and a post from its official handle on X came after the securities watchdog’s account on X had been compromised. In the meantime, BTC had neared $48,000 and crashed soon after.
A verdict from the SEC is widely anticipated as soon as today. Authorities are now looking into the hacking of the SEC’s official account. Ironically, the SEC has been highly vocal about the risks of cybersecurity vulnerabilities in the crypto space in the recent past. At last check, Gary Gensler, the SEC Chair, had clarified that the Commission had yet to decide on spot BTC ETFs.
So far, nearly a dozen names have lined up to list BTC ETFs. Blackrock (NYSE:BLK), ARK, 21 Shares, and Fidelity are some of the names looking to launch spot BTC ETFs, and a decision on ARK 21’s application is due today. Fees are expected to play a major role in deciding the popularity of these ETFs, and multiple hopefuls have indicated plans to offer these ETFs at lower rates than the present market norms.
Over the past year, as the excitement surrounding spot ETFs rose in unison with broader market optimism, BTC has climbed by nearly 160%. MicroStrategy’s (NASDAQ:MSTR) Michael Saylor has sold company shares to hoard more and more Bitcoins.
Still, the possibility remains that traders may choose to swiftly cash in their chips once the years-in-the-making spot ETF approval finally arrives. The Bitcoin halving is drawing ever closer as well. In the meantime, the price of Bitcoin is still respecting its multi-month support line, but a break below $44,000 could usher in a sharp correction.
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