Crypto News: What you need to know amidst heightened speculation surrounding BTC-spot ETF applications

Crypto News: The cryptocurrency market experienced a 2.87% surge in Bitcoin (BTC) on Thursday, partially reversing a slight downturn from the previous day. The notable shift in BTC’s value comes amidst heightened speculation surrounding the potential approval of BTC-spot ETF applications by the U.S. Securities and Exchange Commission (SEC).

Bloomberg Intelligence ETF analyst James Seyffart, in response to the Matrixport report on X (formerly Twitter), provided insights during an interview with Sin City Crypto. James continued to share updates, drawing attention to the imminent opening of the approval window on Friday.

In an intriguing update, Craig Salm, the Chief Legal Officer of Grayscale, posted on X, stating, “Just filling out some forms.” This post quickly gained traction with 1.9 million views and 6,900 likes, underscoring the fervor surrounding the BTC-spot ETF market.

Eric Balchunas, another Bloomberg Intelligence ETF Analyst, offered an overnight update, indicating that the SEC is currently providing final comments. He added, “So I mean this is def as close to ‘done’ as we’ve been but no official approval as far as I know.”

Despite the buzz, uncertainty looms following the Matrixport Report. James shared a post from Bitwise, revealing that less than 50% of all advisors anticipate a spot BTC ETF in 2024. This insight highlighted the differing perspectives between advisors and Bloomberg ETF analysts.

Expressing surprise at the findings, Seyffart commented, “Not gonna lie. This is very surprising to me. Particularly with all the added media coverage. Only 39% of advisors surveyed are expecting a spot BTC ETF in 2024. Probably a case of boy who cried wolf haha.”

Concluding the day, the Bloomberg Intelligence ETF analyst maintained a cautious stance, stating, “Lot of noise about tomorrow. Sticking to this. I’m not expecting official BTC ETF approval orders tomorrow. Still expecting them January 8th-10th.”

In a related development, on Thursday, Chairman of the House Financial Services Committee Patrick McHenry announced a sub-committee hearing scheduled for January 10. Titled “Regulatory Whiplash: Examining the Impact of FSOC’s Ever-Changing Designation Framework on Innovation,” this hearing could bring attention back to SEC Chair Gary Gensler and the ongoing regulatory discussions surrounding cryptocurrency.

The hearing’s focus on regulatory frameworks and their impact on innovation may rekindle the debate on the Digital Asset Anti-Money Laundering Act. This legislation, spearheaded by Senator Elizabeth Warren, has been viewed by many as a potential disruptor in the U.S. crypto landscape.

As the crypto community eagerly awaits the outcome of the BTC-spot ETF speculation, the regulatory landscape and legislative developments continue to play a pivotal role in shaping the future of cryptocurrencies in the United States.