Grayscale Investments, a prominent asset management company in the United States, has recently updated its spot Bitcoin (BTC) ETF application with financial regulators in the country.

The crypto-focused asset manager amended its S-3 filing with the Securities and Exchange Commission (SEC) to convert its BTC trust (GBTC) into a spot bitcoin ETF, anticipating approval later this month.

However, the updated application lacks essential information, including the omission of authorized participants and other key details in similar applications. In this context, authorized participants are financial services companies or corporate institutions capable of creating and redeeming shares of an ETF upon its launch.

Missing Information Raises Concerns

On Tuesday, January 2, Eric Balchunass, a senior ETF analyst at Bloomberg, shared insights on Grayscale’s updated S-3 filing on X (formerly Twitter). He noted that the company left the space blank where the names of authorized participants should be listed.

Balchunass highlighted that the missing information is a crucial part of the mandatory disclosures requested by the securities watchdog before an application can be considered.

Furthermore, the analyst disclosed that Grayscale omitted information regarding its fees in the updated application.

New Grayscale amendment just dropped. Clear language on cash only but still no AP named, just blanks where name should go. Not sure why since SEC wants to see it and they have been pretty cocksure about having one. Also, nothing on fee (that I could see). That’s big open q too. https://t.co/tQ9MTBlvg8 pic.twitter.com/id8Tb8ImaP

— Eric Balchunas (@EricBalchunas) January 2, 2024

The latest amendment makes it the third time Grayscale has updated its Bitcoin spot ETF application following the SEC’s directive to submit revised documents by December 29, 2023.

The company, along with other asset managers such as BlackRock, VanEck, Valkyrie Investments, Bitwise Investment Advisers, Invesco Ltd, Fidelity, WisdomTree Investments, and WisdomTree Investments, amended their various applications on Thursday and Friday before the SEC’s deadline.

SEC to Green Light Spot ETF Applications in January

Market experts familiar with the filing process suggest that companies submitting their revised applications before the deadline may launch their products on January 10, 2024.

Last year, Bloomberg analyst James Seyffart predicted the SEC would likely approve all 12 spot bitcoin ETFs submitted to the agency between January 5 and 10.

If approved, the move is expected to introduce new investment opportunities in the US market for institutional investors and drive BTC to new all-time highs before the Bitcoin Halving in April 2024.

ETF Approval to Unlock Opportunities

Apart from the expected increase in price for BTC, the Chicago Board Options Exchange (CBOE) recently disclosed that approval for the new product offerings could usher in a new wave of institutional investors into the crypto economy.

John Palmer, the president of CBOE Digital, stated in an interview with BloombergTV that the spot ETF approval could also unlock interest in Bitcoin derivatives and RIA-based funds.

Moreover, Palmer anticipates a substantial expansion in BTC derivatives products once a spot ETF receives potential approval from the financial authorities. According to him, institutional players are increasingly expected to rely on these derivatives to hedge risks.

During the interview, the CBOE Digital boss also said that the new investment products will pave the way for pension funds.

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Funds & ETFs, Market News, News

• Financial market participants await the US inflation data
• Bitcoin shows signs of a possible reversal
• A falling wedge and a bullish divergence support the case for higher Bitcoin prices

Today is important for anyone interested in financial markets and US data. Because the US economy is the largest in the world and the US dollar is the world’s reserve currency, monetary policy is the main driver of financial markets’ volatility.

Volatility, or the lack of it, is the one that upsets cryptocurrency traders. Bitcoin went nowhere since it traded above $30k in April, as every rally was sold.

But a close look at the traditional currency market reveals that most fiat currencies have traded similarly against the US dollar. Therefore, if anything is going to push the cryptocurrency market’s volatility up, it is going to be the US dollar.

Core CPI expected at 0.2% in August

Today’s release in the United States is expected to show that the Core CPI in August has increased by 0.2% m/m while the headline inflation is set to rise to 0.6% m/m from the previous 0.2%.

But the bias is that inflation will surprise to the downside.

If that is the case, the bets will increase the Fed will hold rates steady and perhaps, it will be enough to convince market participants that there will be no rate hike anymore and that the Fed has already reached the terminal rate.

A bullish divergence supports the case for higher Bitcoin prices

The summer months brought broad US dollar strength across financial markets. EUR/USD dropped from above 1.12 to below 1.07. At the same time, Bitcoin declined from $32k to $25k as investors bought the US dollar.

Bitcoin chart by TradingView

However, recent price action suggests that there is scope for optimism. First, the market formed a bullish divergence with the RSI. Second, a falling wedge pattern suggests that a reversal might be in the cards.

All in all, we will all find out where Bitcoin goes next sooner rather than later. Now that the lull summer trading is gone, expect the market’s volatility to pick up as important economic data is due.

• Bitcoin has moved in tight ranges since it broke above $30k in 2023
• Market participants await key economic events in September
• All eyes are on the Fed and its monetary policy decision 

Bitcoin investors probably have lost their patience during the summer months, as the cryptocurrency did not move. Known for its high volatility levels, Bitcoin is simply consolidating current levels. 

Make no mistake, the start of the year was a promising one. After all, Bitcoin rallied from 16k to $32k, doubling in price. 

But since it traded above $30k for the first time this year, it began a consolidation that currently lasts for more than five months. Moreover, the ranges become tighter and tighter, making it difficult to swing trade. Speculators, therefore, must scalp or wait for the market to move first and act second. 

Bitcoin chart by TradingView

Financial markets await key events in September

Most likely, financial markets (and the cryptocurrency market) do not move because market participants await key events due in September. 

More precisely, they await the Federal Reserve of the United States September decision and the US CPI data for August. Both events will increase volatility for the US dollar, so Bitcoin might finally break the range it held during the summer. 

The latest inflation data showed that the prices of goods and services in the United States have come down nicely. Sure enough, inflation is way above the Fed’s 2% target. 

Nevertheless, the disinflationary process suggests that inflation has peaked and what remains is to give the interest rate hikes time to make their way through the economy. 

Therefore, the Fed’s focus might not be on inflation anymore but on job creation – the other part of its dual mandate. As such, if the current inflation trend remains unchanged, the Fed might not see the need to raise the funds rate again. 

It means the US dollar might weaken in September if the Fed does not pause and delivers a dovish message. Bitcoin may resume its bullish 2023 trend if that is the case. 

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ACX Token Seed-Sale Details

1 ACX = 0.00125 ADA
1 ADA = 800 ACX
Minimum Buy: 300 ADA
Maximum Buy: 30,000 ADA

To participate in the On Going $ACX Seed-Sale, users should only use Cardano native wallets like Yoroi Wallet, Daedalus Wallet, Nami Wallet or Adalite Wallet.

Comprehensive guide will be made available on how to participate in the ACX Seed-Sale

Remember, users can only participate in the Seed-Sale via our website: https://acardex.io/seed-sale.html

Ask your questions through the Social media handle if you are confused about anything.

Telegram: https://t.me/acardexcommunity
Twitter: https://twitter.com/_acardex
Medium: https://medium.com/@acardex

 

Company Contact:

Website: https://acardex.io/
Contact Name: Acardex
Contact Email: [email protected]