Spot BTC ETF Firmly Established, Affirms K33 Researchers

• Bitcoin Spot ETF Approval Looms in January, Predicts K33 Report
• BlackRock and ARK Invest Collaboration
• Bitcoin's Performance and Future Outlook
• Potential Repercussions for Bitcoin Traders
• US SEC May Approve Bitcoin ETF in Early 2024

Bitcoin Spot ETF Approval Looms in January, Predicts K33 Report

A recent report from K33 suggests that the approval of a spot Bitcoin$42,260 -0.64% (BTC) Exchange Traded Fund (ETF) is highly likely to occur in January. The head of research at K33, Anders Helseth, and senior analyst Vetle Lunde have noted that recent updates to the ETF application increase the chances of approval by the US Securities and Exchange Commission (SEC).

BlackRock and ARK Invest Collaboration

BlackRock and ARK Invest have concurred to a cash-creation arrangement for their respective funds. The two firms will use cash to purchase BTC to generate shares for their ETFs. The researchers emphasized Bitcoin's price activity over the past week, indicating it has attracted new buyers and encouraged profit-taking by sellers, thereby leading prices to stabilize on increased trading volume.

Bitcoin's Performance and Future Outlook

The report further points out that open interest in BTC perpetual contracts has declined to its lowest point this year, showing no signs of 'retail froth.' Nevertheless, the researchers believe this trend will likely shift following the approval.

Potential Repercussions for Bitcoin Traders

The K33 report cautions that institutional traders might decide to take profits after the SEC's approval. If this happens, BTC's price could experience a correction. The report suggests that active traders will likely realize profits on their current long positions, leading to reduced CME dominance.

US SEC May Approve Bitcoin ETF in Early 2024

According to Bloomberg analysts, the US SEC could approve one or more spot Bitcoin ETF applications by January 10, 2024. The SEC has deferred every deadline in 2023 and may arrive at a decision early next year. Yet, the decision may be postponed due to technical reasons. The SEC is also taking legal action against several cryptocurrency companies in the US, including Coinbase.

Edited by Jonathan Stoker