- SEC could approve ETF on Friday; Fed thinks rate hike cycle is over (1.04)
headlines
FOX Business has learned that SEC attorney staff from the Division of Trading and Markets will hold a meeting Wednesday with officials from the major exchanges — the New York Stock Exchange, Nasdaq and Chicago Board Options Exchange — where the ETF will trade. location.
The meeting was seen as a positive sign that the SEC is getting closer to approving some or all of the dozen or so product applications submitted by major currency managers and cryptocurrency companies, the information came from company sources who requested anonymity. Specifically, the SEC requires exchanges to amend and finalize so-called 19 b-4 documents, which are filed by exchanges on behalf of issuers and must be approved by the SEC before an ETF can be sold to the public.
While a final decision has not yet been made, sources said the SEC could begin notifying issuers of approvals on Friday and trading could begin as early as next week. ETF analysts and issuers agree that the SEC will issue a favorable decision on or before January 10 as the SEC continues to meet with key players in the matter.
Fed officials agreed at their December meeting that the interest rate hike cycle that began in 2022 may be over, Fed minutes showed. They pointed to a moderation in inflation, especially the six-month annualized rate, and signs that supply chains are returning to normal while the labor market is beginning to loosen as more people join the workforce. They also say raising interest rates above 5% has dampened consumer demand, thereby easing inflation. They did not discuss when to start cutting interest rates. The Fed dot plot shows the bank plans three rate cuts in 2024. (Golden Ten)
ETF Progress
Fox reporter Eleanor Terrett posted on the comment of.
Bloomberg ETF analyst Eric Balchunas posted on the Identifying comments on 19B-4S filed by issuers of Bitcoin spot ETFs. The SEC has been working closely with issuers offline to refine their 19 b-4s, rather than doing extensive re-filings like S-1s.
According to previous news, Forbes reporter Eleanor Terrett posted on the
Matrixport: SEC May Reject All Bitcoin Spot ETF Applications in January
Matrixport analyst Markus Thielen said the SEC may reject all applications for a Bitcoin spot ETF in January.
Thielen also said that the application for a Bitcoin spot ETF still falls short of key requirements that must be met before SEC approval.
Matrixport: If SEC rejects spot ETF application, BTC may fall back to the $36,000/$38,000 range
According to a report published by Matrixport, it believes that all current spot Bitcoin ETF applications fail to meet a key requirement, so it expects the SEC to reject all proposals in January, which may occur in the second quarter of 2024.
Since traders began betting on the ETF’s approval in September 2023, at least $14 billion in additional fiat and leverage has been deployed into the cryptocurrency space. Some of these flows may be related to easing macro conditions as the Fed turns dovish. But of that $14 billion in additional long positions, $10 billion may be related to expectations of ETF approval.
If the SEC refuses to approve the ETF, there will be a massive liquidation in the market, with most of the $5.1 billion in long positions expected to be liquidated, and the price of Bitcoin could quickly drop by 20% and fall back to the $36,000/$38,000 range. Even so, Matrix on Target still expects Bitcoin prices to be higher by the end of 2024 than the $42,000 level at the beginning of the year, even if the SEC vetoes the ETF.
Bloomberg ETF analyst Eric Balchunas posted on social media that many investors came to inquire after seeing the report published by Matrixport that Bitcoin spot ETF will be rejected, but he personally did not see anything other than the imminent approval. Any other indications, so also wondering if Matrixport has any sources or if this conclusion is just speculation.
Balchunas added that Matrixport, which appears to have been a Bitcoin bull, had only recently published a report that the ETF would be approved, and was unsure why it had published information to the contrary.
Wu Jihan: Matrixport analysts operate independently and are not influenced by management
Wu Jihan posted on the X platform that Matrixport analysts operate independently and express their opinions without any influence or intervention from management. This recent report was prepared for Matrixport clients. However, its widespread dissemination by the media was not part of Matrixports plans and is beyond its control.
Wu Jihan further stated that from the perspective of Bitcoin’s history and future prospects, the current volatility and the uncertainty of the approval of the Bitcoin ETF in January 2024 are ultimately unimportant. In the long run, Bitcoin will always dominate. In his view, SEC approval of spot ETFs is inevitable.
Goldman Sachs Could Play Key Role in BlackRock and Grayscale’s Spot Bitcoin ETF
Investment firm Goldman Sachs is in talks with BlackRock and Grayscale Investments to play a key role in their proposed spot Bitcoin exchange-traded fund (ETF), CoinDesk reports, citing anonymous sources.
If approved, Goldman Sachs will serve as an authorized participant in BlackRock and Grayscale Investments spot Bitcoin ETF, meaning the Wall Street giant will be allowed to purchase and redeem shares directly from the ETF, the U.S. Securities and Exchange Commission said in a statement. explained in the document.
Although the SEC has not yet approved any spot Bitcoin ETFs, experts believe the regulator will make a decision between January 8 and 10. Goldman Sachs role as an authorized participant also requires approval.
Market changes
BTC briefly rebounded to 43,000 USDT, down 4.89% in 24 H
Ouyi OKX market shows that BTC rebounded to 43,000 USDT in a short period of time and is now trading at 42,897 USDT, with a 24 H drop of 4.89%.
PEOPLE fell below 0.03 USDT, falling 61.64% in the past two hours
Ouyi OKX market shows that PEOPLE fell below 0.03 USDT and is now trading at 0.027 USDT, with a drop of 38.21% in 24 H.
Industry news
The European Banking Authority (EBA), the regulator that conducts stress tests on EU banks, will take additional steps to predict how stress on non-bank financial institutions (NBFIs), including cryptocurrency-related entities, will affect lending institutions.
EBA Chairman José Manuel Campa said in an interview that concerns about the contagion of the crisis have prompted the need to dig deeper into the connections between banks and other financial institutions. We should do more and we will do more. We The entire underlying chain of non-bank financial institutions needs to be understood.”
It is reported that non-bank financial institutions hold approximately US$219 trillion in assets, accounting for almost half of global financial assets.
According to official news, Web3.0 security agency CertiK today released Hack 3d: 2023 Annual Web3.0 Security Report.
The report shows that 751 security incidents occurred in Web3 in 2023, causing losses of approximately US$1.84 billion, a 51% decrease from 2022. Among them, the total loss from private key leakage incidents in 2023 exceeded US$880 million, the highest among all types of incidents; the total loss from security incidents on Ethereum was US$686 million, the highest among all chains; in addition, 35 cross-chain security incidents The incident caused a huge loss of nearly US$800 million, suggesting that interoperability vulnerabilities need to be focused on.
The report also summarizes several latest industry trends in project parties seeking refunds through retrospective bounties, the spillover of Web2.0 risks to Web3.0, and the implementation of industry regulations and institutional applications.
