A week of high luck and expectations
As a decision on Bitcoin (BTC) exchange-traded funds (ETFs) approaches, aspiring crypto businesses, investors and regulators are taking decisive action to better prepare for the unknown.
The total weekly outflow from various Bitcoin short investment products has exceeded $1 million, and the Crypto Fear and Greed Index has entered the “Extreme Greed” zone. Moreover, Standard Chartered predicts that Bitcoin will reach $200,000 by 2025 if the BTC ETF is approved.
Bitcoin Short ETFs Record $1M Outflows Weekly, Awaiting Spot BTC ETF Approval
In the first week of 2024, digital asset investment products or exchange-traded products (ETPs) saw an inflow of $151 million, while outflows from Bitcoin short positions exceeded $1 million.
Earlier, many market analysts predicted that the potential approval of the BTC ETF could be a “buy the rumor, sell the news” phenomenon, but the latest digital asset investment flow data contradicts the claim, which has shown a large amount of flow in the past several weeks.
Bitcoin Index Tips to ‘Extremely Greed' as Market Holds its Breath for ETFs
The Crypto Fear and Greed Index has indicated an “extremely greedy” market sentiment among crypto investors. According to the Crypto Fear and Greed Index, Bitcoin's market sentiment score is 76 out of a possible 100 — the highest score since bitcoin hovered at a peak price of $69,000 in mid-November 2021.
The Bitcoin Sentiment Index briefly entered “extreme greed” at 75 points on December 5th.
Before that, the index finally changed to “Extremely Greedy” on November 11, 2021, when it scored 77 points.
Standard Chartered recommends $200,000 in Bitcoin by the end of 2025 if ETFs are allowed
Multinational bank Standard Chartered predicts that bitcoin could reach $200,000 by the end of 2025 if BTC ETFs are approved and become successful as investment products.
Standard Chartered posting some moon bill! $200,000 to come pic.twitter.com/IQueMhjgiP
— Lark Davis (@TheCryptoLark) January 9, 2024
“If ETF-related inflows are as material as we expect, we think the end-2025 level could reach $200,000,” Standard Chartered's head of digital assets Geoff Kendrick and precious metals analyst Suki Cooper said in a Jan. 8 report. Shared by X (formerly Twitter).
The bank's price forecast estimated that the US-listed Bitcoin ETF will run between 437,000 and 1.32 million BTC by the end of 2024. The company estimates this to equate to $50 billion to $100 billion in revenue.
Hashdex Spot Bitcoin ETF Omitted From Amended S-1 Filings – What Does It Mean?
While several asset managers filed S-1 form amendments on January 8, crypto asset management company Hashdex did not issue an amended form as part of the process to seek approval to list its spot BTC ETF fund shares on US-based exchanges.
Also, no update from @hashdex yet as others have pointed out. But they stand out from the pack simply because they're the only product on this list that's working as an EFF. So I don't read much yet.
— James Seyff (@JSeyff) January 8, 2024
According to Bloomberg ETF analyst Jeff Seifert, the Hashdex Bitcoin ETF application is different from other firms in that it aims to replace the existing crypto futures ETF. Hashdex filed its filing with the SEC in August, proposing a future investment vehicle that Bitcoin could take a place in.
Gary Gensler has already warned about the potential place of Bitcoin ETF approval in crypto
US Securities and Exchange Commission Chairman Gary Gensler asked crypto investors to keep a few things in mind as many asset managers await final word on whether to approve or deny BTC ETF applications.
1⃣ Providers of crypto asset investments/services may not comply with applicable laws, including federal securities laws. Investors in crypto asset securities should understand that they may be deprived of key information and other important protections related to their investment.
— Gary Gensler (@GaryGensler) January 8, 2024
Although there is uncertainty over the SEC's decision to approve one or more BTC ETFs at the same time, applications are for Valkyrie, WisdomTree, BlackRock, VanEick, Invesco and Galaxy, Greyscale, ARK Invest and 21Shares, Fidelity, Bitwise and Franklin Templeton.
Explore ‘Gary Gensler's ETF Dilemma' in our latest comic! Can Gary Gensler keep saying no as ETF decision date approaches? Share your thoughts below! pic.twitter.com/ujSOkz0Sg6
— Cointelegraph (@Cointelegraph) January 4, 2024
S-1 filings are expected on Jan. 8 — part of a deadline from the SEC following multiple 19b-4 filings on Jan. 5. Both have suggested moving forward for the SEC to allow crypto ETF listings on US exchanges, but approval is not guaranteed.
