The Bitcoin (BTC) price is currently experiencing a sell-off as uncertainty arises in the market regarding the approval of spot Bitcoin Exchange Traded Funds (ETFs). This fear and doubt have caused BTC to dip by 3% from around $34,500 to approximately $33,500. The trigger for this decline was the removal of BlackRock’s iShares Bitcoin Trust ticker $IBTC from the US Depository Trust & Clearing Corp.’s (DTCC) list on its website, as reported by Barron’s journalist Joe Light.
While some traders were expecting approval within days, the removal of BlackRock’s spot Bitcoin ETF ticker from the DTCC’s website list suggests that approval might still be some time away. Despite this setback, market participants remain confident in the eventual approval of spot Bitcoin ETFs. This is supported by the recent decision of the Securities and Exchange Commission (SEC) to back down in its lawsuit against Grayscale, indicating a shift in their stance towards approving digital asset managers’ spot Bitcoin ETF applications.
Furthermore, significant Wall Street institutions have made adjustments to their own spot Bitcoin ETF applications, indicating constructive collaboration with the SEC in the approval process. Analysts predict that a batch of spot Bitcoin ETFs could secure approval within the next few months, with JP Morgan anticipating approval before January 10th. Matrixport also maintains its prediction that the Bitcoin price will reach the $40,000 mark.
Although the current sell pressure in the Bitcoin market may be discouraging, it presents buying opportunities for investors who believe in the near-term bullish trend. Despite the delay in spot Bitcoin ETF approvals, market participants remain optimistic about the future growth of Bitcoin.
