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FameEX Hot Topics | Major Asset Managers Prepare to Acquire BTC Ahead of Spot Bitcoin ETF Launches, Moody's Director Reveals

2023-12-06 16:32:40

In the midst of the recent surge in Bitcoin's price, Yiannis Giokas, a senior director at Moody's Analytics, has shed light on the primary catalyst behind this phenomenon. According to Giokas, the imminent approval of spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) is driving the bullish sentiment in the cryptocurrency market. Moody's Analytics, a subsidiary of Moody's Corp., specializes in non-rating activities and is closely monitoring these developments.

In correspondence with Bitcoin News, Giokas pointed out, "The biggest driver behind the surge in Bitcoin price is likely the number of applications for spot BTC ETF which are expected to be approved by the SEC in January." He went on to elaborate on the situation, emphasizing, "The race is heating up to launch these vehicles with large asset managers getting ready to acquire the underlying asset to offer the ETF to retail and institutional investors."

The expectations regarding the approval of spot Bitcoin ETFs have been a topic of significant interest, with Bloomberg estimating a 90% likelihood of the SEC granting approval by January 10. The SEC has been actively engaging with various exchanges and spot Bitcoin ETF issuers, including notable names like Blackrock, Ark Invest, and Grayscale Investments, to discuss their applications.

Anthony Scaramucci, the founder of Skybridge Capital, anticipates a substantial influx of capital from Wall Street into Bitcoin once spot Bitcoin ETFs are officially launched. Tom Farley, former President of the New York Stock Exchange (NYSE), shares this sentiment, predicting a surge of funds into the crypto industry with the SEC's approval of spot Bitcoin ETFs. Financial advisor Ric Edelman has also noted that many professionals in his field are eagerly awaiting SEC approval to offer these investments to their clients. However, JPMorgan has issued a cautionary note, suggesting that the introduction of spot Bitcoin ETFs could exert "severe downward pressure on Bitcoin prices."

The race to launch these ETFs reflects the growing institutional interest in Bitcoin and the broader cryptocurrency market. As regulatory clarity unfolds and financial giants prepare to enter the space, the cryptocurrency landscape continues to evolve rapidly. The outcome of the SEC's decision in January will undoubtedly have a significant impact on Bitcoin's trajectory and the investment landscape for retail and institutional investors alike.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.

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