The crypto world buzzed with drama on Friday, fueled by an unverified rumor suggesting the SEC would greenlight Bitcoin ETFs. Instead, attention shifted to an 11-page letter from Better Markets, linked to Sen. Elizabeth Warren and SEC Chair Gary Gensler, cautioning against approving Bitcoin ETFs. Despite concerns, it’s doubtful this letter will derail the approval process, especially as it seems like a rehashed version of an older document.
The prevailing belief is that the SEC, after a court setback, will likely approve a group of filings on January 10, preventing any single Bitcoin ETF applicant from gaining an unfair advantage. However, uncertainties remain: which company will dominate the market—BlackRock, Grayscale, or others—and how an ETF approval will impact Bitcoin’s price.
Opinions diverge on this: the bear case suggests any price increase post-approval is already factored in, leading to a drop once the news is out. On the other hand, the bull case involves the concept of “model portfolios,” where major players like BlackRock may include Bitcoin, potentially boosting its value. Do you lean toward the bullish or bearish scenario for Bitcoin ETFs? Let’s discuss if you have a strong inclination either way.
