Spot Bitcoin ETFs Set to Begin Trading on January 11 Following SEC Approval; ETH Surges as Speculation Shifts to Spot ETH ETFs

Following the announcement of Spot BTC ETFs by the SEC, the broader cryptocurrency market was up, with Bitcoin and Ether rising by 0.87% and 8.97%, respectively, in the past 24 hours.

Talk of the Town:

Bloomberg analyst James Seyffart confirms that spot Bitcoin ETFs are set to begin trading as early as January 11, following the SEC's approval of 11 such ETFs. With S-1 prospectuses going effective, no further steps are required for their launch. Previously, similar crypto-related ETF products typically began trading within two weeks of approval. The launch of these ETFs marks a significant step for traditional financial giants, offering institutional investors regulated exposure to Bitcoin. Analysts predict a long-term positive impact on Bitcoin's price, although early performance may vary. Bitcoin is currently trading at $46,410, showing a slight increase since the ETF's approval.

Although BTC moved slightly following the long-awaited approval, the largest cryptocurrency might have shown resilience as the market behavior of "buy the rumor, sell the news" didn't materialize this time. In our view, it might have to do with the Bitcoin halving and broader institutional adoption. For one thing, the Bitcoin halving expected in April this year usually leads to speculators entering the market months earlier. Given it is three months away from the halving, Bitcoin will likely test new period highs. For another, broader institutional adoption causes a reduction in volatility in traditional equity markets, where index ETFs, such as S&P 500 ETFs, show resilience in the face of market volatility. Bitcoin has seen broader institutional purchase in the past year, and those institutional investors usually HODL longer than retail investors and have a longer investment horizon.

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Daily Top Performer — Ethereum (ETH)

Today’s outperformer is ETH, which jumped 8.2% amid speculation of upcoming Ether ETF approval as the market shifts focus to potential approval of Ether ETFs.

Ethereum (ETH), launched on July 30, 2015, is a decentralized blockchain platform that employs a proof-of-stake model with its cryptocurrency, ether, for network validation and payment purposes. Ether's value rose over $2,400 due to speculation about a possible Ether ETF, following the expected U.S. approval of a Bitcoin ETF. BlackRock's filing for an Ether ETF has increased trader interest in Ethereum-based assets. Despite market uncertainty about the Ether ETF's approval, the crypto community is showing a growing interest in Ethereum-related tokens, with speculation that significant players like BlackRock and Fidelity will also launch an Ether ETF that gets approved.

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