Why Bitcoin ETF Approval Will Not Be a ‘Sell the News’ Event Analysts – BeInCrypto

Speculation is stirring within the cryptocurrency community regarding the anticipated decision on the Bitcoin exchange-traded fund (ETF) this week. ARK 21Shares awaits a decision on Wednesday, intensifying discussions about the potential impacts of both approval and denial on Bitcoins price.

Predictions vary, with expectations of a price increase upon approval and potential declines for both approval and denial. However, one analyst questioned the rationale behind people shorting Bitcoin before the decision.

On X (formerly Twitter), crypto commentators are debating over the potential impact on Bitcoins price following the anticipated decision from the United States Securities and Exchange Commission (SEC).

The SEC is set to provide a decision to ARK 21Shares regarding its spot Bitcoin ETF application on January 10. The deadline for other asset managers follows shortly after.

Alex Becker explains to his 922,000 followers on X that the reason that approval of a Bitcoin ETF will not lead to a Sell the news event.

He explains that, if anything, it is just opening up the asset to a lot more wealthy individuals. Furthermore, these individuals may have never invested in crypto otherwise. This is due to its untraditional ways of doing it, like on an exchange, as opposed to the stock exchange:

It allows the biggest money holders in the world to actively invest in a way that is comfortable n easy for them.

At the time of publication, Bitcoins price stands at $44,239.

Read more: How To Prepare for a Bitcoin ETF: A Step-by-Step Approach

Meanwhile, the engineering lead at Swan Bitcoin, Dan Webb, points out that even if the price does decline if the ETF is approved, the downside will not be as extreme as the potential upside in the event of positive news.

What is the risk reward of being short Bitcoin going into this week? Even if the ETF gets approved and its a sell the news event, whats the potential upside for shorts? 5-10% (assuming no leverage)?

Mati Greenspan, the Founder and CEO of Quantum Economics, told BeInCrypto earlier this month he believes SEC Chair Gary Gensler is unlikely to want to disappoint his allies by approving an ETF:

I doubt very much thatGary Gensler is going to approveany kind of crypto-related ETF. I think if its within his power, hes going to do anything he can to delay the crypto innovation in favor of the big bankers that is beholden to.

Read more: Who Owns the Most Bitcoin in 2024?

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that ourTerms and Conditions,Privacy Policy, andDisclaimershave been updated.

The rest is here:

Why Bitcoin ETF Approval Will Not Be a 'Sell the News' Event Analysts - BeInCrypto