Cryptocurrency ETFs and Market Overview

Anticipation Builds as U.S. Nears Potential Approval of Spot bitcoin ETFs

In the world of cryptocurrency, anticipation is building as experts and investors eagerly await a series of spot bitcoin ETF approvals in the United States. The possibility of these approvals has been highlighted by industry analysts, with James Seyffart from Bloomberg Intelligence leading the charge in predicting a high likelihood of this momentous event.

Seyffart’s insights have been a source of optimism in the cryptocurrency community, as he stated, “We still believe there is a 90% chance of spot bitcoin ETF approvals by Jan 10.” Seyffart took to social media, specifically the X network, to share his views, further elaborating on the situation by suggesting that a “wave of approval orders for all the current applicants could occur.” This wave of approvals could be a game-changer for the cryptocurrency market and investors alike.

Background and Strategic Delay

What has caught the attention of many is the coordinated delay in orders by the U.S. Securities and Exchange Commission (SEC) for multiple firms, including financial heavyweights such as BlackRock and Fidelity. This strategic delay appears to signal that the SEC might be preparing to permit a suite of bitcoin ETFs in the near future. Seyffart points to a specific window of opportunity, one catalyzed by Grayscale’s recent court victory, which may set off a domino effect of approvals by January 2024.

Global Market and Future Prospects

Highlighting the timeline, Seyffart mentioned that the SEC has until 17 November 2023 to make decisions on the first batch of applications, with the possibility of more approvals coming early next year. If a hypothetical approval of spot bitcoin ETFs occurs this week, it could trigger a potentially protracted launch period for these financial products, as legal analyst Scott Johnsson explains.

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The global perspective on spot bitcoin ETFs is equally significant. CoinGecko reports that these products have garnered a total of $4.16 billion in assets worldwide. Notably, Canadian ETFs, which were launched in 2021, account for nearly half of these assets. In stark contrast, the U.S. has thus far only approved futures-based ETFs, which are seen as a less desirable option by many investors.

ethereum and bitcoin Experience Sudden Downturn Amidst Crypto ETF Speculation

In related news, ETH and BTC have taken investors on a rollercoaster ride, experiencing a sudden downturn following what many had seen as a promising rally. The digital currencies, which have been the subject of intense market scrutiny in recent weeks, witnessed a sharp dip in their prices, leaving traders and enthusiasts on edge.

Massive Liquidations Shake the Market

The sudden downturn was accompanied by massive liquidations, shaking the cryptocurrency market to its core. In the span of just one hour, an astounding $11.22 million worth of liquidations occurred, as reported by CoinGlass data. What’s intriguing is that the liquidations were nearly evenly split between long positions, totaling $5.67 million, and short positions, which amounted to $5.55 million.

Taking a broader perspective over a four-hour timeframe, the liquidations escalated significantly to a staggering $280.76 million. The majority of this amount originated from long position liquidations, totaling $174.08 million, while short positions contributed $106.68 million to this massive figure.

Over the course of a full day, the total liquidations reached an eye-watering $475.71 million. Interestingly, in this longer timeframe, the trend reversed, with short positions seeing more liquidations ($268.07 million) than long positions ($207.64 million).

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Cryptocurrency ETF Speculation Takes Center Stage

Amidst the turbulence, the cryptocurrency community is abuzz with speculation following the registration of the iShares ethereum Trust in Delaware. This move closely mirrors the registration of BlackRock’s iShares bitcoin Trust, which occurred just a week before their formal ETF application with the U.S. Securities and Exchange Commission (SEC).

The registration of the iShares ethereum Trust is seen by many as a significant development that could potentially pave the way for increased institutional investment in ethereum. It hints at the possibility of ethereum ETFs, much like the bitcoin ETFs that have generated considerable interest in recent months.

Price Overview

Despite undergoing a steep correction, BTC was still up 0.32%. According to the price tracking website CoinStats, the cryptocurrency was trading hands at $36,766.53. Meanwhile, BTC was also up nearly 7% over the past 7 days.

Not only was BTC up over the past day and week, CoinStats showed that its longer-term time frames were also well in the green. At press time, BTC was up 34% for the month and more than 131% over the past year.

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By Team