Major cryptocurrencies, including Bitcoin, Ethereum, and Dogecoin, experienced a significant surge on Monday evening amidst escalating expectations surrounding the approval of a spot-based Bitcoin exchange-traded fund (ETF).
Anticipated Regulatory Decision:
Investors await the regulatory verdict for the first spot-based Bitcoin exchange-traded funds in the U.S., expected this week. This anticipation drove the market rally, with most observers predicting approval. Bulls foresee these funds as catalysts that would significantly broaden the investor base for Bitcoin, attracting substantial inflows.
Recent Developments:
Today, prominent asset management firms such as BlackRock, Fidelity, and Grayscale updated their S-1 filings with the Securities and Exchange Commission (SEC). Simultaneously, multiple issuers disclosed the fees they intend to charge investors.
Ahead of the SEC's decision, potential issuers revealed a critical aspect of their products: the fees. Fee structures differentiate the 13 proposed ETFs seeking SEC approval or rejection. Lower fees, calculated as a percentage of the fund’s assets, promise higher returns for investors. Bitwise, a crypto native fund manager, notably stands out by initially charging the lowest fee at 0.24% after a 6-month period without fees. However, other contenders like Ark and 21Shares aim to charge 0.25%, while VanEck and Franklin specify their fees at 0.25% and 0.29%, respectively.
BlackRock, the world's largest asset manager, set its fee at 0.30%, a figure lower than anticipated by experts. This move reflects BlackRock's strategic positioning despite its potential to charge more due to its size and reputation.
Market Status:
The global cryptocurrency market cap currently stands at $1.63 trillion, displaying a marginal 1.71% decline over the past 24 hours. Concurrently, major stock averages exhibited an upward trend on Monday, largely driven by the performance of technology shares. The S&P 500 concluded with a 1.41% gain, closing at 4,763.54, while the Nasdaq Composite surged by 2.2%, marking its most substantial one-day gain since Nov. 14.
Upcoming Market Indicators:
Traders anticipate gaining clarity on potential Federal Reserve rate cuts this week. The release of the December consumer price index on Thursday and the producer price index on Friday will offer insights into the effectiveness of the central bank’s efforts to stabilize inflation at its 2% target.
Analyst Insights:
Cryptocurrency analyst Michael Van de Poppe expressed confidence in the legitimacy a Bitcoin Spot ETF would confer on the asset, potentially heralding a glorious upcoming bull cycle. Meanwhile, analyst Carl from the Moon hinted at potential manipulation if the ETF is denied on Wednesday, especially concerning Bitcoin.
On-chain analyst Ali Martinez emphasized the upcoming Bitcoin Halving as a historical catalyst for major price surges, irrespective of the Bitcoin ETF's outcome.
Brian
Bitcoin.com
Cointelegraph
Bitcoinist